Epworth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Epworth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Epworth you should see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Epworth flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in Epworth with in excess of one hundred 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Epworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 9 months of protracted correspondence with the freeholder of her one bedroom apartment in Epworth, Isabel initiated the lease extension process as the 80 year deadline was quickly approaching. The lease extension was concluded in August 2010. The freeholder’s costs were kept to an absolute minimum.
Mr Nathan King acquired a studio apartment in Epworth in March 2003. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical residencies in Epworth with an extended lease were in the region of £210,000. The average ground rent payable was £50 invoiced quarterly. The lease expired on 10 February 2105. Having 80 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.
Dr Archie Cook completed a newly refurbished apartment in Epworth in May 2004. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative homes in Epworth with a long lease were in the region of £280,000. The average amount of ground rent was £45 collected yearly. The lease terminated on 7 August 2094. Having 69 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.