Unfortunately that a Easthampstead residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Easthampstead property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. Most flat owners in Easthampstead will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | 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. |
Using our service will provide you increased control over the value of your Easthampstead leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted correspondence with the landlord of her studio flat in Easthampstead, Madeleine commenced the lease extension process as the 80 year mark was quickly approaching. The lease extension was finalised in October 2009. The freeholder’s charges were negotiated to less than 500 GBP.
Dr Edward Allen moved into a one bedroom apartment in Easthampstead in September 2002. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative properties in Easthampstead with 100 year plus lease were worth £225,800. The average ground rent payable was £60 collected monthly. The lease finished in 2084. Taking into account 60 years outstanding we calculated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 not including costs.
In 2011 we were e-mailed by Dr F Taylor who, having owned a first floor apartment in Easthampstead in February 1996. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Similar properties in Easthampstead with an extended lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease lapsed on 28 June 2104. Taking into account 80 years remaining we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.