Ellesmere Port leases on domestic properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Ellesmere Port will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Ellesmere Port with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The lawyers that we work with handle Ellesmere Port lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Felix owned a studio apartment in Ellesmere Port on the market with a lease of just over 72 years remaining. Felix on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Felix to invoke his statutory right. Felix procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. N García acquired a first floor flat in Ellesmere Port in April 1999. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative residencies in Ellesmere Port with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 billed yearly. The lease ended in 2092. Having 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 plus professional charges.
Dr E Hall owned a first floor apartment in Ellesmere Port in April 2000. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable homes in Ellesmere Port with an extended lease were valued around £198,800. The average amount of ground rent was £55 invoiced monthly. The lease terminated in 2081. Taking into account 55 years outstanding we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including costs.