The market value of Ellesmere Port leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than 80 years
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Ellesmere Port,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ellesmere Port valuers.
Benjamin was the the leasehold proprietor of a 2 bedroom apartment in Ellesmere Port on the market with a lease of a little over fifty eight years left. Benjamin informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give 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 increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2012 we were phoned by Mr and Mrs. T Mason who, having took over the lease of a basement apartment in Ellesmere Port in March 1997. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Ellesmere Port with an extended lease were valued around £216,000. The average ground rent payable was £60 collected every twelve months. The lease finished on 14 September 2083. Considering the 58 years remaining we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including legals.
Last Christmas we were called by Dr Megan Roberts , who was assigned a lease of a recently refurbished apartment in Ellesmere Port in May 2005. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparative properties in Ellesmere Port with 100 year plus lease were valued around £200,000. The average ground rent payable was £50 billed annually. The lease concluded in 2103. Considering the 78 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.