Ewloe leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Ewloe tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Ewloe you should check if your lease has between 70 and ninety years remaining. There are good reasons why a Ewloe leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| Skipton Building Society |
The lawyers that we work with undertake Ewloe 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 conveyancer we work with provide it.
Stanley was the the leasehold proprietor of a 2 bedroom apartment in Ewloe on the market with a lease of a little over 61 years remaining. Stanley on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Autumn we were phoned by Mr Stanley Nelson , who moved into a garden apartment in Ewloe in March 1996. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparative properties in Ewloe with a long lease were in the region of £267,600. The average ground rent payable was £65 invoiced quarterly. The lease came to a finish in 2093. Taking into account 67 years outstanding we approximated the premium to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of fees.
In 2010 we were e-mailed by Mrs Francesca Smith who, having moved into a first floor flat in Ewloe in May 2006. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative flats in Ewloe with a long lease were in the region of £206,200. The mid-range amount of ground rent was £55 collected annually. The lease came to a finish in 2082. Given that there were 56 years unexpired we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.