The closer a domestic lease in Ely nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Ely will meet the qualifying criteria; however a conveyancer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Ely,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ely valuers.
In the wake of eight months of protracted negotiations with the freeholder of her studio apartment in Ely, Niamh initiated the lease extension process just as her lease was approaching the crucial 80-year threshold. The lease extension was concluded in February 2011. The landlord’s costs were negotiated to under 600 GBP.
Dr Maisie Morris purchased a basement flat in Ely in November 1998. The question was if we could estimate the premium would be for a ninety year lease extension. Comparable homes in Ely with 100 year plus lease were valued about £189,000. The mid-range amount of ground rent was £55 collected per annum. The lease came to a finish in 2079. Given that there were 53 years unexpired we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
Last Winter we were called by Dr Leo Richardson , who moved into a garden apartment in Ely in March 2001. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Ely with a long lease were valued around £290,000. The average ground rent payable was £45 billed yearly. The lease ran out on 12 June 2099. Considering the 73 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.