Ely leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Ely will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and steps to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Ely with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
Irrespective of whether you are a tenant or a landlord 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 in-depth market knowledge and the close ties they enjoy with Ely valuers.
Off the back of protracted negotiations with the freeholder of her two bedroom apartment in Ely, Ellen initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The lease extension was concluded in March 2007. The freeholder’s charges were negotiated to under 700 GBP.
Dr Robyn Rodríguez moved into a purpose-built apartment in Ely in June 2004. We are asked if we could estimate the price would be for a ninety year lease extension. Identical homes in Ely with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 collected per annum. The lease ended on 25 August 2103. Given that there were 78 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.
Last Spring we were approach by Mr and Mrs. Y Michel , who completed a ground floor flat in Ely in June 2001. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative homes in Ely with an extended lease were valued about £267,600. The mid-range ground rent payable was £65 collected monthly. The lease ran out in 2092. Taking into account 67 years outstanding we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 not including fees.