Long Eaton leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Long Eaton will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Long Eaton can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Long Eaton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
William owned a 2 bedroom flat in Long Eaton on the market with a lease of fraction over 72 years outstanding. William informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were William to exercise his statutory right. William procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Dr R Clark was assigned a lease of a newly refurbished apartment in Long Eaton in January 2003. The question was if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparable homes in Long Eaton with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 collected monthly. The lease concluded on 19 November 2079. Having 54 years unexpired we estimated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 plus professional charges.
Ms Abbie Young was assigned a lease of a garden apartment in Long Eaton in August 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in Long Eaton with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 collected yearly. The lease came to a finish in 2099. Given that there were 74 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.