Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Eaton Bray. Inevitably, the period of lease remaining reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house 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. Qualifying leaseholders in Eaton Bray have the legal entitlement to extend the lease for a further ninety years under legislation. Do give due attention before delaying your Eaton Bray lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Eaton Bray with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Eaton Bray can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Eaton Bray lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her first floor flat in Eaton Bray, Chloe initiated the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension completed in October 2013. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were contacted by Mr W Robinson , who completed a ground floor apartment in Eaton Bray in November 2004. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical premises in Eaton Bray with 100 year plus lease were valued around £264,000. The average amount of ground rent was £60 collected quarterly. The lease expired in 2079. Considering the 53 years unexpired we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of expenses.
Last year we were called by Mr and Mrs. I Phillips , who took over the lease of a one bedroom flat in Eaton Bray in March 2006. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Eaton Bray with 100 year plus lease were valued about £225,400. The average amount of ground rent was £45 invoiced monthly. The lease expiry date was in 2090. Considering the 64 years remaining we approximated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 plus costs.