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 prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Eccles. Clearly, the term of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the property needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Eccles have the right to extend the lease for a further 90 years in accordance with statute. Please give careful attention before putting off your Eccles lease extension. Holding off that expense now likely increases the price you will eventually incur to extend your lease
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancers that we work with handle 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 lawyer we work with provide it.
18 months ago Muhammad, came critically close to the eighty-year mark with the lease on his two bedroom apartment in Eccles. Having bought his flat twenty years previously, the length of the lease was of no significance. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Muhammad extended the lease just under the wire in March. Muhammad and the freeholder eventually settled on an amount of £5,500 . If the lease had slid below 80 years, the figure would have gone up by a minimum £1,000.
Mr and Mrs. A White owned a garden apartment in Eccles in September 2004. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparable flats in Eccles with an extended lease were valued about £210,000. The average ground rent payable was £50 collected monthly. The lease concluded on 16 July 2105. Considering the 80 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
Last Summer we were e-mailed by Mr and Mrs. J Baker , who owned a one bedroom apartment in Eccles in January 2004. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Eccles with an extended lease were in the region of £275,000. The average ground rent payable was £45 invoiced annually. The lease ran out on 5 November 2094. Having 69 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.