Epping leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Epping residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Epping you must see if your lease has between 70 and 90 years left. There are good reasons why a Epping leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service will provide you increased control over the value of your Epping leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Logan, came seriously close to the eighty-year threshold with the lease on his two bedroom flat in Epping. In buying his property two decades ago, the unexpired term was of no significance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Logan extended the lease at the eleventh hour in March. Logan and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If he had missed the deadline, the premium would have become more costly by a minimum £1,050.
In 2009 we were phoned by Mr and Mrs. D Walker who, having owned a ground floor apartment in Epping in June 2008. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Similar properties in Epping with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected quarterly. The lease came to a finish on 1 October 2092. Considering the 66 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.
Dr Amber Martínez acquired a one bedroom flat in Epping in January 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Epping with an extended lease were valued around £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease ran out in 2103. Considering the 77 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.