Epping leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Epping enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Epping you should investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Epping flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Epping with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Epping valuers.
Trailing unsuccessful negotiations with the landlord of her two bedroom apartment in Epping, Louise commenced the lease extension process as the eighty year mark was fast nearing. The transaction completed in April 2010. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Mr and Mrs. O Thomas , who purchased a ground floor flat in Epping in July 1996. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Identical flats in Epping with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 billed monthly. The lease expired on 19 April 2095. Considering the 69 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last Spring we were phoned by Mrs Emily Davis , who purchased a one bedroom apartment in Epping in August 2008. The question was if we could estimate the price would be to prolong the lease by ninety years. Comparable properties in Epping with a long lease were worth £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease expiry date was on 7 January 2106. Given that there were 80 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.