Evesham leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard 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 Evesham will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Evesham,the lease extension solicitors 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 Evesham valuers.
In recent months Logan, started to get close to the 80-year mark with the lease on his leasehold flat in Evesham. In buying his flat two decades ago, the unexpired term was of minimal significance. by good luck, he realised he needed to take action soon on Extending the lease. Logan extended the lease just under the wire last April. Logan and the freeholder eventually settled on an amount of £5,000 . If he not met the deadline, the sum would have gone up by a minimum £975.
Last Summer we were e-mailed by Dr E Walker , who was assigned a lease of a basement flat in Evesham in November 1998. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparative homes in Evesham with 100 year plus lease were in the region of £206,200. The mid-range amount of ground rent was £60 collected monthly. The lease finished in 2082. Having 56 years unexpired we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.
Last Autumn we were approach by Ms Chloe Ramírez , who owned a recently refurbished flat in Evesham in April 2001. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar premises in Evesham with a long lease were worth £300,000. The average amount of ground rent was £50 invoiced per annum. The lease ended on 27 June 2102. Considering the 76 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.