The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Ely may extend the lease for a further 90 years under statute. Please give careful consideration before delaying your Ely lease extension. Shelving that expense today simply escalates the premium you will eventually be required to pay for a lease extension.
Leasehold properties in Ely with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Ely,the lease extension solicitors that we work with will always be willing 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 6 months of lengthy negotiations with the freeholder of her studio flat in Ely, Stephanie commenced the lease extension process as the eighty year threshold was swiftly nearing. The lease extension completed in March 2010. The landlord’s charges were kept to an absolute minimum.
In 2012 we were phoned by Ms O Harris who, having completed a first floor flat in Ely in October 2010. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Ely with an extended lease were worth £205,000. The average amount of ground rent was £50 billed per annum. The lease concluded on 23 March 2104. Given that there were 79 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
Dr Leon Sharif acquired a recently refurbished flat in Ely in October 2007. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Ely with a long lease were worth £275,000. The average ground rent payable was £65 billed annually. The lease elapsed in 2093. Having 68 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.