The nearer a residential lease in Eaton Bray gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. Most flat owners in Eaton Bray will qualify for this right; that being said a lawyer will be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Eaton Bray with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Using our service will provide you enhanced control over the value of your Eaton Bray leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Leon was the the leasehold proprietor of a 2 bedroom apartment in Eaton Bray on the market with a lease of a few days over 72 years unexpired. Leon on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
In 2010 we were e-mailed by Dr Kirsty Ali who, having was assigned a lease of a first floor flat in Eaton Bray in April 2007. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Eaton Bray with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed on 26 November 2095. Taking into account 69 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
Last August we were e-mailed by Dr Jack Cooper , who was assigned a lease of a one bedroom flat in Eaton Bray in October 2010. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Eaton Bray with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £60 billed every twelve months. The lease came to a finish in 2106. Considering the 80 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.