Ely leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Ely will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Ely with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ely can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Ely lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Jackson, came seriously close to the 80-year threshold with the lease on his garden flat in Ely. In buying his home two decades ago, the length of the lease was of little bearing. Fortunately, he noticed he would soon be paying way over the odds for Extending the lease. Jackson arranged for a lease extension just ahead of time last September. Jackson and the landlord in the end settled on a premium of £5,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £925.
Last Summer we were contacted by Ms A López , who completed a ground floor apartment in Ely in August 2008. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative premises in Ely with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced per annum. The lease came to a finish in 2100. Having 75 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2011 we were contacted by Mrs Victoria Gray who, having acquired a recently refurbished flat in Ely in March 2002. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in Ely with a long lease were worth £250,400. The average amount of ground rent was £65 billed annually. The lease elapsed in 2089. Given that there were 64 years outstanding we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 plus expenses.