For anyone whose Long Eaton flat is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Long Eaton with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Long Eaton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Long Eaton valuers.
Last year William, came dangerously close to the 80-year threshold with the lease on his ground floor flat in Long Eaton. In buying his flat 18 years ago, the lease term was of minimal bearing. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. William extended the lease just under the wire in March. William and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the sum would have escalated by at least £1,075.
Last June we were approach by Mr and Mrs. Y Richardson , who was assigned a lease of a purpose-built apartment in Long Eaton in April 2003. We are asked if we could estimate the price could be for a 90 year lease extension. Identical residencies in Long Eaton with 100 year plus lease were valued around £267,600. The average amount of ground rent was £65 collected per annum. The lease expired on 15 July 2093. Given that there were 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 not including fees.
Last month we were approach by Mr J Bernard , who purchased a newly refurbished apartment in Long Eaton in September 2005. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical properties in Long Eaton with an extended lease were valued around £201,200. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed on 7 September 2082. Considering the 56 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.