East Cowes leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most East Cowes tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in East Cowes you should see if your lease has between 70 and ninety years remaining. There are compelling reasons why a East Cowes leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold premises in East Cowes with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your East Cowes 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.
In the wake of 9 months of lengthy negotiations with the freeholder of her leasehold apartment in East Cowes, Isabelle started the lease extension process just as her lease was nearing the critical eighty-year mark. The legal work was concluded in January 2006. The landlord’s fees were kept to an absolute minimum.
Ms Daisy Cook was assigned a lease of a garden apartment in East Cowes in February 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Identical properties in East Cowes with an extended lease were valued around £220,400. The mid-range amount of ground rent was £45 billed per annum. The lease terminated on 22 May 2089. Having 64 years unexpired we estimated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of fees.
Last Winter we were called by Mr Eliot Robinson , who was assigned a lease of a ground floor flat in East Cowes in July 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Similar premises in East Cowes with a long lease were worth £270,000. The average ground rent payable was £55 billed every twelve months. The lease ran out on 28 May 2100. Taking into account 75 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.