The closer a residential lease in Ellesmere Port nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Ellesmere Port will qualify for this right; however a conveyancer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
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 additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Ellesmere Port,the lease extension lawyers 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.
William owned a 2 bedroom flat in Ellesmere Port being marketed with a lease of fraction over sixty years unexpired. William informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were William to invoke his statutory right. William procured expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Last Christmas we were e-mailed by Mr and Mrs. W Patel , who acquired a newly refurbished flat in Ellesmere Port in October 2001. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar flats in Ellesmere Port with an extended lease were valued about £290,000. The average amount of ground rent was £45 collected annually. The lease concluded in 2099. Given that there were 73 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last Christmas we were phoned by Mr M Hill , who moved into a newly refurbished flat in Ellesmere Port in October 2004. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical residencies in Ellesmere Port with 100 year plus lease were in the region of £240,600. The mid-range ground rent payable was £60 billed every twelve months. The lease came to a finish in 2088. Considering the 62 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.