Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Epping. Inevitably, the term of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Epping have the right to extend the lease for a further 90 years under statute. Please give careful deliberation before delaying your Epping lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Epping leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Owen owned a conversion apartment in Epping being marketed with a lease of a few days over 72 years unexpired. Owen informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last year we were phoned by Mr and Mrs. F Simon , who acquired a one bedroom apartment in Epping in January 2012. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Identical homes in Epping with a long lease were valued around £255,000. The average ground rent payable was £50 billed yearly. The lease concluded on 27 May 2096. Taking into account 71 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
Dr Elizabeth Davies owned a basement apartment in Epping in March 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable premises in Epping with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out on 27 October 2076. Having 51 years outstanding we calculated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of fees.