Main reasons to commence your Ewloe lease extension
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Main reasons to start your Ewloe lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/ewloe">Ewloe</a> lease depreciates with the years remaining on the lease.
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Ewloe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Ewloe enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Ewloe you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value <h4>Ewloe property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold residencies in Ewloe with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it. <h4>Banks and Building Societies may decide not to loan monies on a short lease</h4>
The propensity since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Coventry Building Society</td>
<td> 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.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Yorkshire Building Society</td>
<td> 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.
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<h4> Get in touch with one of our Ewloe lease extension solicitors or enfranchisement solicitors
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<p> Engaging our service will provide you better control over the value of your Ewloe leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell.
The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Ewloe Lease Extension Case Studies:
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<h5> Logan, Ewloe, Flintshire,</h5>
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Logan owned a 2 bedroom flat in Ewloe on the market with a lease of fraction over sixty years unexpired. Logan on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
<h5>Ewloe case:</h5>
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Last Autumn we were contacted by Dr F Thomas , who
purchased a one bedroom apartment in Ewloe in January 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical homes in Ewloe with a long lease were worth £257,800. The average amount of ground rent was £65 collected per annum. The lease ended in 2091. Considering the 65 years left we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including costs.
<h5>Ewloe case:</h5>
<p> Mr O Ali moved into a one bedroom apartment in Ewloe in October 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical homes in Ewloe with 100 year plus lease were worth £191,400. The average ground rent payable was £55 billed quarterly. The lease end date was in 2080. Having 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of professional charges.
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