The market value of a leasehold property in Epsom is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that all matters can be finalised in advance of the eighty year threshold. Current legislation entitles Epsom qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
Lease extensions in Epsom can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Epsom lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the landlord of her studio flat in Epsom, Laura started the lease extension process just as the lease was approaching the crucial 80-year deadline. The transaction was concluded in April 2010. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were approached by Mr V Hernández who, having moved into a garden flat in Epsom in April 2006. The question was if we could approximate the premium would be to extend the lease by 90 years. Comparative homes in Epsom with an extended lease were valued about £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease came to a finish on 17 August 2103. Considering the 77 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.
An example of a Lease Extension case for a Epsom property 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 related to 1 flat. The number of years remaining on the existing lease(s) was 60.43 years.