West Ewell leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. Leasehold owners in West Ewell will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in West Ewell with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you increased control over the value of your West Ewell leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful discussions with the landlord of her ground floor flat in West Ewell, Sarah initiated the lease extension process just as her lease was coming close to the critical 80-year mark. The lease extension completed in November 2014. The landlord’s fees were negotiated to less than 450 GBP.
In 2012 we were contacted by Dr Benjamin Davies who, having was assigned a lease of a garden apartment in West Ewell in February 2006. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar premises in West Ewell with an extended lease were in the region of £242,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease elapsed on 24 January 2092. Considering the 67 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including expenses.
Dr G Williams bought a one bedroom flat in West Ewell in March 2006. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative properties in West Ewell with a long lease were valued about £280,000. The mid-range ground rent payable was £55 collected monthly. The lease concluded on 2 February 2103. Having 78 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.