With a long leasehold property in Esher and Claygate, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years left. Anyone in Esher and Claygate with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. When the lease term has under eighty years outstanding, under the current statute the landlord can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Esher and Claygate,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 experience and the close ties they enjoy with Esher and Claygate valuers.
In 2014 Stanley, came very near to the eighty-year mark with the lease on his basement flat in Esher and Claygate. In buying his home 19 years previously, the unexpired term was of minimal interest. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Stanley was able to extend his lease just under the wire in April. Stanley and the landlord subsequently settled on a premium of £5,500 . If he had missed the deadline, the premium would have become more costly by at least £875.
In 2011 we were called by Mr and Mrs. O Harris who, having purchased a one bedroom flat in Esher and Claygate in September 2003. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Identical properties in Esher and Claygate with 100 year plus lease were valued about £210,600. The average amount of ground rent was £45 collected yearly. The lease finished in 2087. Having 62 years remaining we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including costs.
An example of a Lease Extension matter before the tribunal for a Esher and Claygate residence 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.