Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Eastcote. Inevitably, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Eastcote have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Do give careful consideration before putting off your Eastcote lease extension. Holding off that expense now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Eastcote,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Eastcote valuers.
Last Winter Noah, came very near to the eighty-year mark with the lease on his basement apartment in Eastcote. In buying his property two decades ago, the unexpired term was of minimal concern. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Noah arranged for a lease extension just under the wire last May. Noah and the freeholder in the end agreed on a premium of £6,000 . If he had missed the deadline, the price would have escalated by a minimum £1,125.
In 2013 we were e-mailed by Mr Ethan Collins who, having acquired a first floor flat in Eastcote in July 2004. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative properties in Eastcote with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 collected yearly. The lease concluded in 2085. Taking into account 60 years remaining we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Eastcote property is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case related to 1 flat. The unexpired residue of the current lease was 53.26 years.