It’s an underpublicised truth that a Ewloe residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Ewloe property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term dips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Ewloe will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Ewloe,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ewloe valuers.
Ryan owned a conversion apartment in Ewloe being marketed with a lease of just over 72 years remaining. Ryan on an informal basis contacted his freeholder being a well known local-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 on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
In 2010 we were called by Mr E Rodríguez who, having purchased a basement apartment in Ewloe in November 1999. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Ewloe with a long lease were in the region of £225,800. The average ground rent payable was £60 collected per annum. The lease expired on 2 September 2085. Having 60 years remaining we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 plus fees.
Last Spring we were approach by Dr W Turner , who completed a newly refurbished apartment in Ewloe in August 1999. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Ewloe with a long lease were worth £210,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease elapsed in 2105. Given that there were 80 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.