Chances are that if you own a flat in Epping you actually own a long leasehold interest over your property
Leasehold premises in Epping with over 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Epping,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Epping valuers.
Subsequent to lengthy correspondence with the landlord of her first floor apartment in Epping, Emily started the lease extension process as the 80 year deadline was rapidly approaching. The lease extension completed in September 2012. The landlord’s fees were kept to an absolute minimum.
Mrs V Simon took over the lease of a recently refurbished flat in Epping in March 2006. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Identical homes in Epping with 100 year plus lease were valued about £270,000. The average amount of ground rent was £55 collected annually. The lease end date was on 18 July 2100. Having 75 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
In 2013 we were e-mailed by Mr and Mrs. U Wright who, having completed a studio apartment in Epping in February 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical homes in Epping with a long lease were in the region of £173,800. The average amount of ground rent was £60 collected monthly. The lease concluded in 2080. Taking into account 55 years left we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including fees.