Unfortunately that a Epping residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Epping property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Epping will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Epping with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Epping leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Michael, started to get near to the 80-year threshold with the lease on his studio flat in Epping. In buying his home two decades ago, the unexpired term was of little bearing. Luckily, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Michael was able to extend his lease just under the wire in August. Michael and the landlord who owned the flat above in the end settled on sum of £5,000 . If he had missed the deadline, the price would have escalated by at least £1,125.
Mr and Mrs. N André took over the lease of a one bedroom flat in Epping in August 1995. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative flats in Epping with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 billed monthly. The lease concluded in 2099. Considering the 73 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
Last Winter we were approach by Dr Kayleigh Anderson , who owned a basement apartment in Epping in August 1995. We are asked if we could estimate the price would be for a ninety year lease extension. Similar residencies in Epping with a long lease were valued around £264,000. The average amount of ground rent was £60 billed quarterly. The lease lapsed in 2079. Having 53 years outstanding we approximated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 plus professional charges.