The re-sale value of a leasehold property in Eaton Bray depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. Ideally one should start the lease extension process when the lease still has 82 years to run so that formalities can be concluded in advance of the eighty year mark. Statute entitles Eaton Bray qualifying lessees to an additional term of 90 years on top of the existing term, at a peppercorn rent (no ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 lawyers that we work with procure Eaton Bray 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.
In 2014 Jason, came very close to the 80-year mark with the lease on his basement flat in Eaton Bray. In buying his property two decades ago, the lease term was of minimal bearing. Fortunately, he noticed he needed to take action soon on Extending the lease. Jason extended the lease just in the nick of time last June. Jason and the freeholder in the end agreed on the final figure of £5,000 . If the lease had fallen lower than eighty years, the figure would have increased by at least £950.
Mrs F Torres acquired a garden apartment in Eaton Bray in February 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Eaton Bray with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 billed yearly. The lease finished in 2083. Given that there were 57 years left we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus expenses.
In 2014 we were phoned by Mr D Wright who, having completed a studio apartment in Eaton Bray in August 2012. The question was if we could estimate the price would be for a 90 year lease extension. Comparable properties in Eaton Bray with an extended lease were worth £250,000. The average amount of ground rent was £50 collected per annum. The lease elapsed on 14 November 2094. Taking into account 68 years left we estimated the premium to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of expenses.