Unfortunately that a West Ewell residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the West Ewell property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. Most leasehold owners in West Ewell will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence 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. |
| Halifax | 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 landlord in West Ewell,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 in-depth market knowledge and the close ties they enjoy with West Ewell valuers.
Trailing protracted discussions with the freeholder of her leasehold flat in West Ewell, Yasmin commenced the lease extension process just as her lease was coming close to the critical eighty-year deadline. The lease extension completed in September 2013. The freeholder’s fees were restricted to less than 700 pounds.
Mr and Mrs. B Davies acquired a basement flat in West Ewell in September 2001. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Similar homes in West Ewell with an extended lease were in the region of £173,800. The average amount of ground rent was £60 billed per annum. The lease expired on 8 March 2080. Considering the 55 years remaining we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.
In 2013 we were phoned by Ms I Johnson who, having owned a garden apartment in West Ewell in March 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in West Ewell with a long lease were worth £235,200. The average ground rent payable was £45 billed monthly. The lease expired in 2091. Considering the 66 years left we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.