Long Eaton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Long Eaton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Long Eaton you should investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Long Eaton flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers 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.
Last Autumn Ryan, started to get near to the eighty-year threshold with the lease on his basement apartment in Long Eaton. Having purchased his flat two decades ago, the unexpired term was of no relevance. As luck would have it, he realised he needed to take action soon on a lease extension. Ryan arranged for a lease extension just under the wire in March. Ryan and the landlord who owned the flat above subsequently settled on sum of £6,000 . If he had missed the deadline, the amount would have escalated by a minimum £850.
Mr Liam Robinson owned a first floor apartment in Long Eaton in April 2010. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Similar premises in Long Eaton with an extended lease were in the region of £260,200. The mid-range amount of ground rent was £65 collected per annum. The lease concluded on 16 October 2092. Having 66 years left we calculated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including professional charges.
Last Autumn we were approach by Mr and Mrs. I Lefèvre , who took over the lease of a one bedroom flat in Long Eaton in November 1998. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparable flats in Long Eaton with an extended lease were in the region of £198,800. The average ground rent payable was £55 billed yearly. The lease end date was in 2081. Considering the 55 years unexpired we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.