There is no doubt about it a leasehold flat or house in Ellesmere is a wasting asset as a result of the shortening lease. If the lease has, over 125 years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner than later. Most flat owners in Ellesmere will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Ellesmere with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Ellesmere leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Riley, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Ellesmere. Having bought his flat two decades ago, the length of the lease was of no significance. by good luck, he noticed he needed to take action soon on a lease extension. Riley was able to extend his lease at the eleventh hour in July. Riley and the freeholder via the managing agents subsequently settled on an amount of £5,500 . If he failed to meet the deadline, the price would have increased by at least £875.
In 2009 we were approached by Mr and Mrs. E Smith who, having completed a studio flat in Ellesmere in February 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable properties in Ellesmere with 100 year plus lease were in the region of £227,800. The average amount of ground rent was £45 invoiced every twelve months. The lease lapsed on 22 July 2091. Having 65 years left we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
Last Autumn we were approach by Ms Samantha Davies , who bought a studio flat in Ellesmere in February 2007. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Ellesmere with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 collected every twelve months. The lease termination date was in 2102. Given that there were 76 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.