Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Eastleigh. Clearly, the length of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Eastleigh have the right to extend the lease for a further 90 years under legislation. Please give careful deliberation before putting off your Eastleigh lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Eastleigh with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Eastleigh,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Eastleigh valuers.
Last October Michael, came dangerously near to the 80-year mark with the lease on his two bedroom flat in Eastleigh. In buying his property twenty years ago, the unexpired term was of no bearing. Thankfully, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Michael was able to extend his lease at the eleventh hour in January. Michael and the freeholder subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the sum would have become more costly by at least £975.
Mr Logan Howard moved into a one bedroom flat in Eastleigh in November 1997. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparable residencies in Eastleigh with 100 year plus lease were in the region of £174,200. The average amount of ground rent was £55 invoiced monthly. The lease elapsed in 2076. Taking into account 51 years as a residual term we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.
Last October we were approach by Mr and Mrs. P Mitchell , who took over the lease of a studio flat in Eastleigh in November 2003. The question was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar homes in Eastleigh with a long lease were worth £285,000. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish on 13 October 2096. Taking into account 71 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.