There is no doubt about it a leasehold property in Epsom and Ewell is a wasting asset as a result of the shortening lease. If the lease has, over 99 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in Epsom and Ewell will qualify for this right; that being said a conveyancer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Epsom and Ewell with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Epsom and Ewell leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Stanley was the the leasehold proprietor of a high value flat in Epsom and Ewell being sold with a lease of just over sixty years remaining. Stanley informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Stanley to invoke his statutory right. Stanley obtained 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 2013 we were e-mailed by Mrs M Carter who, having moved into a basement apartment in Epsom and Ewell in April 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Epsom and Ewell with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed per annum. The lease termination date was in 2077. Considering the 51 years unexpired we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of expenses.
An example of a Lease Extension decision for a Epsom and Ewell residence is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case affected 1 flat. The unexpired lease term was 60.43 years.