Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Ely. Inevitably, the period of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Ely have the right to extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before putting off your Ely lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service gives you increased control over the value of your Ely leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her one bedroom flat in Ely, Phoebe initiated the lease extension process as the eighty year deadline was fast coming. The lease extension completed in October 2005. The landlord’s fees were kept to an absolute minimum.
Last Winter we were called by Dr Henry Williams , who was assigned a lease of a garden flat in Ely in January 1997. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparable homes in Ely with a long lease were valued around £290,000. The mid-range ground rent payable was £45 collected per annum. The lease termination date was on 19 November 2099. Taking into account 73 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last Winter we were approach by Dr Muhammad Lewis , who moved into a recently refurbished flat in Ely in September 2010. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical flats in Ely with an extended lease were worth £240,600. The mid-range ground rent payable was £65 collected yearly. The lease concluded in 2088. Considering the 62 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of costs.