When it comes to residential leasehold property in Ely, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Residents in Ely with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below eighty years remaining, under the current statute the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Ely leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the landlord of her leasehold apartment in Ely, Freya initiated the lease extension process just as her lease was coming close to the crucial 80-year threshold. The lease extension completed in August 2014. The landlord’s fees were negotiated to slightly above 600 pounds.
In 2011 we were contacted by Dr W García who, having completed a garden apartment in Ely in October 1999. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparable premises in Ely with an extended lease were valued around £250,400. The average ground rent payable was £65 billed per annum. The lease concluded in 2089. Having 64 years left we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of fees.
Last May we were approach by Mrs Victoria Sánchez , who purchased a garden apartment in Ely in April 2010. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical homes in Ely with 100 year plus lease were in the region of £189,000. The mid-range amount of ground rent was £55 collected yearly. The lease came to a finish on 23 March 2078. Considering the 53 years left we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.