The re-sale value of a leasehold property in Ewloe depends on how many years the lease has remaining. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed prior to the eighty year cut off point. Statute entitles Ewloe qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of 90 years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as 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. |
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Ewloe leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Nathan owned a conversion apartment in Ewloe being sold with a lease of just over 72 years unexpired. Nathan informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last year we were e-mailed by Mr and Mrs. E Rogers , who acquired a basement flat in Ewloe in June 2009. The question was if we could estimate the premium could be for a 90 year lease extension. Comparative premises in Ewloe with 100 year plus lease were in the region of £216,000. The average amount of ground rent was £60 billed quarterly. The lease expiry date was on 3 January 2084. Taking into account 58 years unexpired we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
In 2010 we were called by Dr Sam Bertrand who, having bought a one bedroom flat in Ewloe in July 2007. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Identical homes in Ewloe with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed on 16 June 2104. Having 78 years remaining we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.