Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Eaton Bray. Inevitably, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Eaton Bray have the right to extend the lease for an additional 90 years in accordance with legislation. Please give careful consideration before delaying your Eaton Bray lease extension. Holding off the cost now only increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Eaton Bray,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Eaton Bray valuers.
Teddy was the the leasehold proprietor of a 2 bedroom apartment in Eaton Bray being sold with a lease of fraction over 72 years outstanding. Teddy on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Teddy to invoke his statutory right. Teddy procured expert advice and secured satisfactory resolution informally and readily saleable.
Mr and Mrs. J Phillips purchased a newly refurbished flat in Eaton Bray in October 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical flats in Eaton Bray with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £50 collected annually. The lease concluded in 2099. Given that there were 73 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
In 2014 we were approached by Ms Isabel Wilson who, having moved into a one bedroom flat in Eaton Bray in February 1997. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparable flats in Eaton Bray with a long lease were valued around £264,000. The average ground rent payable was £60 collected every twelve months. The lease came to a finish in 2079. Having 53 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus expenses.