When it comes to long leasehold premises in Epping, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Anyone in Epping with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has under eighty years remaining, under the relevant statute the freeholder is entitled to calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Epping with more than 100 years outstanding on the lease are sometimes referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Epping,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Epping valuers.
Ibrahim was the the leasehold proprietor of a 2 bedroom flat in Epping being marketed with a lease of a few days over 59 years unexpired. Ibrahim informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Dr Daisy Davis who, having owned a studio apartment in Epping in June 2009. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Epping with an extended lease were worth £245,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated on 27 October 2094. Having 68 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
Dr E David acquired a one bedroom apartment in Epping in July 2002. The question was if we could estimate the price could be to extend the lease by 90 years. Similar premises in Epping with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease concluded in 2105. Taking into account 79 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.