As the the remaining lease term of a Ewloe residential lease diminished so does its value and therefore the value of your property. If the residual term has, beyond 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Ewloe will meet the qualifying criteria; that being said a conveyancer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Ewloe with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
Jack owned a 2 bedroom flat in Ewloe being marketed with a lease of a little over 61 years unexpired. Jack on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Jack to exercise his statutory right. Jack procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.
Mr and Mrs. R Khan completed a studio apartment in Ewloe in October 2012. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative properties in Ewloe with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 billed every twelve months. The lease ended in 2089. Having 64 years left we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of costs.
Last Spring we were called by Mr and Mrs. R Anderson , who moved into a first floor flat in Ewloe in June 2005. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar residencies in Ewloe with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 collected per annum. The lease ran out in 2078. Considering the 53 years remaining we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.