Unfortunately that a Ewloe residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Ewloe property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Ewloe will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold properties in Ewloe with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Engaging our service will provide you better control over the value of your Ewloe leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the landlord of her studio apartment in Ewloe, Madeleine initiated the lease extension process just as her lease was approaching the crucial 80-year mark. The transaction completed in November 2008. The landlord’s fees were negotiated to slightly above 500 GBP.
Mr and Mrs. E Bonnet took over the lease of a one bedroom flat in Ewloe in May 2011. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparable properties in Ewloe with 100 year plus lease were in the region of £191,400. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out on 28 July 2078. Given that there were 54 years unexpired we estimated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of legals.
Mr H Smith completed a purpose-built apartment in Ewloe in November 1999. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable flats in Ewloe with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced per annum. The lease came to a finish on 1 September 2098. Having 74 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.