On the balance of probabilities if you own a flat in Ely you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Ely lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing unsuccessful correspondence with the landlord of her ground floor apartment in Ely, Ellie initiated the lease extension process as the 80 year threshold was quickly advancing. The legal work was finalised in February 2012. The freeholder’s costs were kept to an absolute minimum.
Last month we were phoned by Dr R Evans , who acquired a basement apartment in Ely in February 1999. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Ely with 100 year plus lease were worth £240,600. The mid-range ground rent payable was £60 billed per annum. The lease finished in 2087. Having 62 years outstanding we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of costs.
Mr and Mrs. Y Gray acquired a one bedroom apartment in Ely in March 1997. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in Ely with an extended lease were worth £174,200. The average ground rent payable was £55 billed per annum. The lease concluded in 2076. Given that there were 51 years remaining we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.