There is no doubt about it a leasehold property in Eaton Bray is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. The majority of flat owners in Eaton Bray will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Eaton Bray leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her ground floor flat in Eaton Bray, Kirsty commenced the lease extension process as the eighty year deadline was rapidly approaching. The legal work was finalised in August 2012. The landlord’s charges were kept to an absolute minimum.
In 2011 we were contacted by Mr and Mrs. C White who, having bought a one bedroom flat in Eaton Bray in March 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical premises in Eaton Bray with 100 year plus lease were valued around £203,200. The average amount of ground rent was £65 billed yearly. The lease lapsed on 26 March 2086. Taking into account 61 years outstanding we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus costs.
Mr C Michel moved into a garden flat in Eaton Bray in November 1995. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Eaton Bray with an extended lease were worth £260,000. The average ground rent payable was £50 billed monthly. The lease came to a finish on 28 November 2097. Considering the 72 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.