Eaton Bray leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Eaton Bray enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Eaton Bray you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Eaton Bray can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 procuring 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.
In 2014 Alex, came seriously close to the eighty-year threshold with the lease on his first floor flat in Eaton Bray. Having bought his home two decades ago, the unexpired term was of minimal importance. by good luck, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Alex extended the lease at the eleventh hour last September. Alex and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If the lease had slid lower than 80 years, the price would have become more costly by at least £1,125.
In 2009 we were called by Mr and Mrs. L Bennett who, having was assigned a lease of a one bedroom apartment in Eaton Bray in June 1995. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar homes in Eaton Bray with an extended lease were valued around £166,400. The mid-range amount of ground rent was £60 collected per annum. The lease finished on 2 May 2079. Given that there were 54 years left we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of legals.
In 2012 we were phoned by Mr and Mrs. C Moore who, having completed a ground floor flat in Eaton Bray in October 1995. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparable properties in Eaton Bray with an extended lease were worth £232,800. The average amount of ground rent was £45 collected every twelve months. The lease terminated on 6 August 2090. Having 65 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.