Easthampstead leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Easthampstead tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Easthampstead you really ought to see if your lease has between seventy and 90 years remaining. There are good reasons why a Easthampstead leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Easthampstead 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.
Leo was the the leasehold owner of a conversion flat in Easthampstead on the market with a lease of a few days over 72 years left. Leo on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Last Summer we were contacted by Mr and Mrs. S Carter , who purchased a recently refurbished flat in Easthampstead in July 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Easthampstead with 100 year plus lease were worth £240,600. The average ground rent payable was £60 billed monthly. The lease ended on 26 May 2086. Having 62 years as a residual term we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of fees.
Last Autumn we were e-mailed by Dr Francesca Alexander , who acquired a basement flat in Easthampstead in September 2009. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical premises in Easthampstead with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease came to a finish in 2075. Having 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.