Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Ewloe. Inevitably, the period of lease remaining shortens over time. This is often overlooked and only becomes a problem when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Ewloe have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before putting off your Ewloe lease extension. Holding off that expense now only increases the price you will eventually have to pay for a lease extension
Leasehold properties in Ewloe with over 100 years outstanding on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Ewloe,the lease extension lawyers 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 Ewloe valuers.
In the wake of eight months of unsuccessful negotiations with the freeholder of her ground floor apartment in Ewloe, Shannon started the lease extension process just as her lease was approaching the all-important eighty-year threshold. The legal work was concluded in August 2013. The landlord’s charges were kept to an absolute minimum.
Ms D Lewis was assigned a lease of a one bedroom flat in Ewloe in February 2007. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable flats in Ewloe with an extended lease were valued about £275,000. The average ground rent payable was £45 invoiced monthly. The lease expired in 2095. Given that there were 69 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
In 2014 we were phoned by Mr and Mrs. E Smith who, having moved into a studio flat in Ewloe in September 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties 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 concluded on 11 November 2084. Given that there were 58 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.