On the balance of probabilities if you own a flat in Epping you actually own a long leasehold interest over your property
Leasehold properties in Epping with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Epping,the lease extension lawyers 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 Epping valuers.
Ibrahim was the the leasehold owner of a high value apartment in Epping being sold with a lease of just over fifty eight years remaining. Ibrahim on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert advice and secured an acceptable deal informally and sell the property.
Mr and Mrs. W Jackson acquired a first floor apartment in Epping in August 2003. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical homes in Epping with 100 year plus lease were valued around £193,400. The average ground rent payable was £65 invoiced annually. The lease came to a finish in 2084. Given that there were 59 years left we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including legals.
In 2013 we were phoned by Mr and Mrs. T Flores who, having took over the lease of a one bedroom apartment in Epping in November 2005. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in Epping with an extended lease were valued about £255,000. The average ground rent payable was £50 billed quarterly. The lease came to a finish on 17 May 2095. Given that there were 70 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 exclusive of expenses.