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 your lease gets more expensive. It is the case that most Ewloe tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Ewloe you really ought to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Ewloe with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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.
Alex was the the leasehold owner of a 2 bedroom apartment in Ewloe being sold with a lease of a little over 72 years left. Alex on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Alex to invoke his statutory right. Alex procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
Last Summer we were phoned by Ms Mollie Rivera , who completed a one bedroom flat in Ewloe in June 2003. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar homes in Ewloe with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced monthly. The lease lapsed in 2101. Having 75 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.
Dr William Mitchell completed a first floor flat in Ewloe in September 1999. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative premises in Ewloe with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 collected every twelve months. The lease concluded on 3 September 2090. Taking into account 64 years left we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 plus costs.