Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Epping. Inevitably, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Epping have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give careful deliberation before delaying your Epping lease extension. Putting off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold residencies in Epping with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Epping,the lease extension lawyers that we work with will always be prepared 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.
Theo was the the leasehold proprietor of a 2 bedroom flat in Epping on the market with a lease of just over 72 years left. Theo on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Theo to exercise his statutory right. Theo procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Last November we were e-mailed by Mr and Mrs. U Ward , who purchased a one bedroom apartment in Epping in March 1996. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative flats in Epping with a long lease were in the region of £254,200. The average amount of ground rent was £60 collected quarterly. The lease finished on 4 May 2076. Given that there were 51 years left we approximated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including costs.
Mr and Mrs. U Thompson completed a newly refurbished apartment in Epping in November 1995. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable flats in Epping with an extended lease were worth £210,600. The mid-range ground rent payable was £45 invoiced per annum. The lease expired in 2087. Having 62 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including expenses.