Epsom leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Epsom tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Epsom you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Epsom with more than 100 years left 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 freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Epsom,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Epsom valuers.
Last year Samuel, came perilously close to the 80-year threshold with the lease on his studio apartment in Epsom. In buying his home two decades ago, the unexpired term was of no concern. As luck would have it, he recognised he would imminently be paying an inflated amount for a lease extension. Samuel extended the lease just in the nick of time in May. Samuel and the freeholder via the managing agents in the end agreed on an amount of £6,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £975.
Mr and Mrs. U Wright moved into a one bedroom apartment in Epsom in September 1998. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparative homes in Epsom with an extended lease were valued around £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease lapsed in 2104. Considering the 79 years as a residual term we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.
An example of a Lease Extension decision for a Epsom premises 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 was 60.43 years.