Ellesmere leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Ellesmere enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Ellesmere you should check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Ellesmere leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than one hundred 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 property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Ellesmere,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 in-depth market knowledge and the close ties they enjoy with Ellesmere valuers.
In the wake of 6 months of lengthy correspondence with the landlord of her garden flat in Ellesmere, Phoebe commenced the lease extension process as the eighty year mark was swiftly approaching. The transaction was finalised in May 2007. The freeholder’s charges were kept to an absolute minimum.
Mrs Stephanie Rodríguez acquired a garden apartment in Ellesmere in August 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative premises in Ellesmere with an extended lease were in the region of £270,000. The average amount of ground rent was £55 billed annually. The lease ended on 9 September 2100. Having 75 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
In 2013 we were called by Mr M Ramírez who, having completed a first floor apartment in Ellesmere in August 1995. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative homes in Ellesmere with 100 year plus lease were worth £173,800. The mid-range ground rent payable was £60 collected every twelve months. The lease expired on 20 May 2080. Given that there were 55 years outstanding we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.