The only way is down when it comes to West Ewell lease terms. West Ewell properties that have a lease term fewer than eighty years will reduce in value even faster, and the cost of extending your lease will go up.
It is generally accepted that a property with more than 100 years remaining is worth roughly 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The lawyers that we work with handle West Ewell 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 conveyancing solicitor we work with provide it.
Last October Lucas, came very near to the eighty-year mark with the lease on his ground floor apartment in West Ewell. Having bought his home twenty years previously, the unexpired term was of minimal importance. by good luck, he became aware that he would imminently be paying an inflated amount for a lease extension. Lucas was able to extend his lease just ahead of time last May. Lucas and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If the lease had fallen lower than eighty years, the figure would have gone up by at least £975.
In 2010 we were approached by Dr H Ward who, having owned a basement apartment in West Ewell in March 2001. The question was if we could approximate the price would be to extend the lease by an additional years. Comparative homes in West Ewell with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded on 20 January 2099. Taking into account 74 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Mr and Mrs. V David owned a purpose-built flat in West Ewell in March 2010. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar properties in West Ewell with a long lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced annually. The lease expiry date was in 2079. Given that there were 54 years outstanding we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including fees.