Esher leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Esher will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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,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 Esher valuers.
After unsuccessful discussions with the freeholder of her one bedroom apartment in Esher, Phoebe initiated the lease extension process as the eighty year deadline was swiftly nearing. The transaction was finalised in February 2007. The freeholder’s fees were negotiated to less than 700 pounds.
Last Summer we were phoned by Ms Jade Morris , who acquired a recently refurbished flat in Esher in April 2002. We are asked if we could approximate the price could be for a ninety year lease extension. Identical premises in Esher with a long lease were worth £275,000. The average ground rent payable was £55 billed per annum. The lease ended in 2101. Having 76 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
An example of a Lease Extension case for a Esher 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 affected 1 flat.