Chances are that if you own a flat in Epworth you actually own a long leasehold interest over your property
Leasehold properties in Epworth with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Epworth,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Epworth valuers.
Two years ago Matthew, started to get close to the 80-year threshold with the lease on his studio flat in Epworth. Having purchased his flat two decades ago, the unexpired term was of no importance. As luck would have it, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Matthew arranged for a lease extension just in the nick of time last September. Matthew and the freeholder via the managing agents eventually agreed on sum of £5,000 . If the lease had slipped lower than eighty years, the sum would have gone up by a minimum £925.
In 2011 we were contacted by Dr Naomi Kelly who, having acquired a first floor flat in Epworth in February 2008. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Identical premises in Epworth with an extended lease were in the region of £196,400. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish on 12 November 2079. Taking into account 54 years as a residual term we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 plus legals.
Last April we were contacted by Dr Victoria Davies , who bought a garden apartment in Epworth in April 1998. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical residencies in Epworth with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £45 billed quarterly. The lease came to a finish in 2099. Considering the 74 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.