Egremont leases on domestic deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Egremont will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some circumstances you may not qualify. There are also strict deadlines and formalities to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you increased control over the value of your Egremont leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Reuben owned a high value flat in Egremont on the market with a lease of fraction over 72 years remaining. Reuben informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Reuben to exercise his statutory right. Reuben procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2014 we were contacted by Dr Bethan Cooper who, having completed a basement apartment in Egremont in May 2009. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Egremont with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 billed quarterly. The lease expiry date was in 2101. Given that there were 75 years unexpired we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.
Dr Charlotte Clarke moved into a studio flat in Egremont in July 2002. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical homes in Egremont with a long lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected yearly. The lease ran out on 12 November 2090. Taking into account 64 years as a residual term we calculated the premium to the landlord for the lease extension to be within £19,000 and £22,000 not including legals.