Empingham leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease drops below eighty years - otherwise a higher premium will be due. Leasehold owners in Empingham will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Empingham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Empingham valuers.
Blake was the the leasehold owner of a conversion apartment in Empingham being sold with a lease of a few days over 72 years unexpired. Blake informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be due on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2011 we were contacted by Mrs S Nguyen who, having acquired a first floor apartment in Empingham in November 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar properties in Empingham with 100 year plus lease were worth £196,400. The average amount of ground rent was £55 invoiced yearly. The lease came to a finish on 18 January 2080. Having 54 years left we estimated the compensation to the freeholder for the lease extension to be within £35,200 and £40,600 plus costs.
In 2013 we were contacted by Mr and Mrs. O Lambert who, having purchased a first floor apartment in Empingham in August 2002. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable premises in Empingham with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 billed monthly. The lease ended in 2100. Having 74 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.