Esher leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Esher tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Esher you really ought to investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Esher leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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 | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Esher,the lease extension experts that we work with will always be willing 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.
During the course of the last few months Archie, started to get near to the 80-year threshold with the lease on his one bedroom flat in Esher. Having purchased his flat two decades ago, the length of the lease was of minimal concern. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Archie extended the lease at the eleventh hour last March. Archie and the landlord subsequently agreed on the final figure of £5,000 . If the lease had slid lower than 80 years, the premium would have increased by at least £1,050.
In 2011 we were approached by Ms N Cooper who, having moved into a newly refurbished apartment in Esher in November 2011. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative flats in Esher with 100 year plus lease were valued around £203,200. The average amount of ground rent was £65 collected quarterly. The lease came to a finish in 2087. Taking into account 61 years as a residual term we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 plus costs.
An example of a Lease Extension decision for a Esher flat 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 related to 1 flat.