The value of Ellesmere Port leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the remaining term is less than 80 years
Leasehold properties in Ellesmere Port with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Ellesmere Port leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Finn was the the leasehold owner of a studio flat in Ellesmere Port on the market with a lease of a little over 61 years unexpired. Finn on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr and Mrs. I López completed a newly refurbished apartment in Ellesmere Port in January 2002. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Ellesmere Port with an extended lease were valued about £275,000. The average ground rent payable was £45 collected monthly. The lease expired on 17 May 2095. Having 69 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.
Mr and Mrs. N Reed owned a studio flat in Ellesmere Port in January 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar premises in Ellesmere Port with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected yearly. The lease came to a finish in 2084. Taking into account 58 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.