The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Ellesmere Port have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Ellesmere Port lease extension. Postponing the costs today simply increases the premium you will ultimately have to pay for a lease extension.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
|Bank of Scotland||Minimum 70 years from the date of the mortgage.|
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|Lloyds TSB Scotland||Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|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.
|Virgin||85 years at the time of completion. If it's less, we require it to be extended on or before completion.|
Irrespective of whether you are a tenant or a landlord in Ellesmere Port,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ellesmere Port valuers.
Two years ago William, came precariously near to the eighty-year threshold with the lease on his garden flat in Ellesmere Port. Having purchased his property twenty years previously, the unexpired term was of little relevance. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. William extended the lease just under the wire last January. William and the freeholder via the management company subsequently settled on a premium of £5,000 . If the lease had slid to less than eighty years, the figure would have increased by at least £1,025.
In 2012 we were approached by Mrs R Moreau who, having purchased a garden apartment in Ellesmere Port in August 2010. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Ellesmere Port with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 billed annually. The lease finished in 2091. Given that there were 70 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
Last Summer we were approach by Mrs Courtney Alexander , who took over the lease of a purpose-built flat in Ellesmere Port in August 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Ellesmere Port with an extended lease were valued around £223,400. The average amount of ground rent was £60 invoiced every twelve months. The lease elapsed in 2080. Given that there were 59 years outstanding we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of legals.