Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Epsom and Ewell. Inevitably, the period of lease left reduces over time. This may pass by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Epsom and Ewell have the right to extend the lease for a further 90 years in accordance with legislation. Do give due consideration before putting off your Epsom and Ewell lease extension. Putting off the cost now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Godiva Mortgages | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Epsom and Ewell leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Thomas, came critically close to the 80-year mark with the lease on his garden flat in Epsom and Ewell. Having bought his home two decades ago, the unexpired term was of minimal relevance. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Thomas was able to extend his lease just ahead of time last June. Thomas and the freeholder via the managing agents eventually settled on sum of £6,000 . If the lease had dropped lower than 80 years, the sum would have become more exhorbitant by at least £1,100.
Mr G Hernández took over the lease of a purpose-built apartment in Epsom and Ewell in February 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Epsom and Ewell with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 collected annually. The lease lapsed in 2106. Considering the 80 years left we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus 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 was in relation to 1 flat. The unexpired term as at the valuation date was 60.43 years.