With a domestic leasehold property in Ellesmere Port, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Anyone in Ellesmere Port with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has below eighty years left, under the relevant statute the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same 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 decades to come.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Ellesmere Port can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
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 in-depth market knowledge procuring Ellesmere Port lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Cameron, came perilously near to the eighty-year mark with the lease on his ground floor flat in Ellesmere Port. Having bought his home two decades ago, the lease term was of little interest. Thankfully, he realised he needed to take action soon on a lease extension. Cameron extended the lease just under the wire in July. Cameron and the landlord in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £875.
In 2010 we were called by Dr C Gómez who, having completed a purpose-built flat in Ellesmere Port in August 2004. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Identical residencies in Ellesmere Port with a long lease were worth £191,400. The average amount of ground rent was £55 invoiced yearly. The lease ran out in 2080. Considering the 54 years left we calculated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 plus legals.
Last year we were called by Mr and Mrs. P Evans , who purchased a purpose-built apartment in Ellesmere Port in February 2002. The dilemma was if we could estimate the price would be for a 90 year lease extension. Identical residencies in Ellesmere Port with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease elapsed on 4 September 2100. Having 74 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.