West Ewell leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in West Ewell enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in West Ewell you really ought to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a West Ewell flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 experts 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 West Ewell valuers.
Subsequent to protracted correspondence with the freeholder of her basement apartment in West Ewell, Bethan started the lease extension process as the 80 year mark was fast advancing. The transaction completed in March 2005. The landlord’s charges were kept to an absolute minimum.
Last year we were e-mailed by Mr Y Mercier , who acquired a ground floor flat in West Ewell in November 2003. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Comparative flats in West Ewell with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed annually. The lease expiry date was in 2083. Having 57 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.
In 2013 we were e-mailed by Dr Emily Taylor who, having owned a one bedroom flat in West Ewell in July 2000. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Identical homes in West Ewell with 100 year plus lease were worth £245,000. The average ground rent payable was £50 invoiced annually. The lease concluded in 2094. Given that there were 68 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.