Unfortunately that a Long Eaton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Long Eaton property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Long Eaton will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Long Eaton with more than one hundred years unexpired 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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 conveyancing solicitors that we work with undertake Long Eaton 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 conveyancer we work with provide it.
Subsequent to lengthy discussions with the landlord of her two bedroom flat in Long Eaton, Danielle initiated the lease extension process as the 80 year mark was rapidly advancing. The legal work was finalised in November 2009. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. J Lewis moved into a first floor flat in Long Eaton in April 2011. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Identical residencies in Long Eaton with an extended lease were valued around £196,400. The mid-range ground rent payable was £55 billed yearly. The lease terminated on 5 May 2078. Taking into account 54 years outstanding we calculated the premium to the landlord for the lease extension to be within £35,200 and £40,600 exclusive of fees.
Ms K Ramírez moved into a ground floor apartment in Long Eaton in October 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Long Eaton with 100 year plus lease were valued around £295,000. The mid-range ground rent payable was £45 billed yearly. The lease ended on 28 April 2099. Taking into account 75 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.