Evesham leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher premium will be payable. Leasehold owners in Evesham will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Evesham with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Evesham 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.
Isaac was the the leasehold proprietor of a high value apartment in Evesham being sold with a lease of fraction over sixty years remaining. Isaac informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
In 2010 we were e-mailed by Mrs Eleanor Díaz who, having took over the lease of a garden apartment in Evesham in May 2002. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Similar flats in Evesham with a long lease were valued around £223,400. The average ground rent payable was £60 billed quarterly. The lease expired in 2084. Having 59 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 plus legals.
Mr and Mrs. D Hernández purchased a basement flat in Evesham in August 2000. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparable homes in Evesham with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ended in 2104. Given that there were 79 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.