The market value of a leasehold property in Esher and Claygate depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be addressed in advance of the 80 year cut off point. Statute entitles Esher and Claygate qualifying lessees to an additional term of ninety years on top of the remaining term, at a notional rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Esher and Claygate with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Esher and Claygate 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 conveyancer we work with provide it.
18 months ago Elijah, came precariously near to the 80-year mark with the lease on his basement apartment in Esher and Claygate. In buying his home two decades ago, the length of the lease was of little relevance. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. Elijah arranged for a lease extension just in the nick of time last April. Elijah and the freeholder via the managing agents eventually agreed on sum of £5,500 . If the lease had dipped to less than eighty years, the sum would have become more costly by at least £875.
Mr and Mrs. Y Rivera was assigned a lease of a one bedroom flat in Esher and Claygate in November 2012. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparable residencies in Esher and Claygate with an extended lease were in the region of £250,000. The average ground rent payable was £50 billed per annum. The lease expiry date was on 17 August 2095. Having 69 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Esher and Claygate property is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case was in relation to 1 flat.