The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Earlswood have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Earlswood lease extension. Postponing the costs now simply increases the price you will eventually be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Earlswood can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Earlswood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Lewis, came seriously close to the eighty-year mark with the lease on his leasehold apartment in Earlswood. In buying his property two decades ago, the lease term was of no significance. Luckily, he recognised he would soon be paying way over the odds for a lease extension. Lewis was able to extend his lease just ahead of time in April. Lewis and the freeholder via the managing agents eventually settled on a premium of £5,000 . If he had missed the deadline, the premium would have increased by a minimum £900.
Last Winter we were e-mailed by Mr G Thomas , who was assigned a lease of a garden flat in Earlswood in October 1998. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable residencies in Earlswood with a long lease were in the region of £240,600. The average amount of ground rent was £60 billed annually. The lease concluded on 6 January 2087. Taking into account 62 years left we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.
In 2011 we were approached by Mrs Erin Patel who, having completed a ground floor flat in Earlswood in May 1995. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical homes in Earlswood with an extended lease were in the region of £174,200. The average amount of ground rent was £55 collected every twelve months. The lease finished on 8 April 2076. Taking into account 51 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.