Emersons Green 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. It is the case that most Emersons Green tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Emersons Green you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Emersons Green,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 Emersons Green valuers.
In the wake of 9 months of unsuccessful discussions with the landlord of her basement apartment in Emersons Green, Caitlin initiated the lease extension process as the eighty year deadline was rapidly approaching. The legal work was concluded in March 2006. The freeholder’s charges were restricted to about 500 GBP.
Last Autumn we were e-mailed by Mr and Mrs. R Moore , who moved into a one bedroom flat in Emersons Green in April 2001. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical homes in Emersons Green with a long lease were valued around £225,800. The mid-range amount of ground rent was £60 collected monthly. The lease expired on 24 March 2086. Considering the 60 years outstanding we calculated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including legals.
Dr U Vincent bought a studio flat in Emersons Green in June 1995. The question was if we could approximate the premium would be for a 90 year lease extension. Comparative homes in Emersons Green with a long lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ended in 2106. Given that there were 80 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.