The only way is down when it comes to Esher and Claygate lease terms. Esher and Claygate flats that have a lease term lower than 80 years will de-escalate in market price even faster, and the cost to extend your lease will increase.
Leasehold premises in Esher and Claygate with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Esher and Claygate,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 Esher and Claygate valuers.
14 months ago David, started to get close to the 80-year mark with the lease on his first floor apartment in Esher and Claygate. Having bought his flat two decades ago, the lease term was of little relevance. Luckily, he recognised he would soon be paying way over the odds for a lease extension. David was able to extend his lease just ahead of time in June. David and the landlord who owned the flat above eventually settled on a premium of £5,000 . If the lease had slipped lower than eighty years, the sum would have escalated by a minimum £1,100.
Last Summer we were approach by Dr Milo David , who took over the lease of a one bedroom apartment in Esher and Claygate in November 2009. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Esher and Claygate with an extended lease were in the region of £265,000. The average ground rent payable was £50 invoiced quarterly. The lease termination date was on 27 October 2099. Having 74 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
An example of a Lease Extension matter before the tribunal for a Esher and Claygate premises 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 affected 1 flat.