Eccles leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Eccles tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Eccles you really ought to see if your lease has between seventy and 90 years left. There are compelling reasons why a Eccles leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with procure Eccles lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jackson owned a conversion flat in Eccles being marketed with a lease of a few days over 72 years outstanding. Jackson on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Jackson to invoke his statutory right. Jackson 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.
In 2011 we were e-mailed by Mr Max Evans who, having took over the lease of a one bedroom flat in Eccles in November 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparable residencies in Eccles with 100 year plus lease were valued about £300,000. The average amount of ground rent was £50 billed monthly. The lease termination date was in 2101. Given that there were 76 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Mr and Mrs. Y Edwards acquired a purpose-built flat in Eccles in April 1998. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable flats in Eccles with an extended lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease came to a finish in 2090. Taking into account 65 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including costs.