When it comes to domestic leasehold premises in Eaton Bray, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Anyone in Eaton Bray with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once the lease term has below eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Eaton Bray with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
Irrespective of whether you are a tenant or a landlord in Eaton Bray,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Eaton Bray valuers.
Last Summer Seth, came perilously near to the eighty-year threshold with the lease on his purpose- built apartment in Eaton Bray. In buying his flat twenty years previously, the lease term was of minimal importance. Thankfully, he realised he needed to take action soon on a lease extension. Seth was able to extend his lease at the eleventh hour last September. Seth and the landlord eventually agreed on the final figure of £5,500 . If he failed to meet the deadline, the price would have escalated by a minimum £1,000.
Mr and Mrs. U Martinez purchased a recently refurbished apartment in Eaton Bray in January 1997. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative homes in Eaton Bray with 100 year plus lease were valued about £220,400. The average amount of ground rent was £45 billed every twelve months. The lease expired on 11 November 2089. Having 64 years unexpired we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including expenses.
Last Autumn we were called by Dr Leon Nguyen , who acquired a ground floor flat in Eaton Bray in May 2012. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative premises in Eaton Bray with a long lease were in the region of £270,000. The average amount of ground rent was £55 invoiced yearly. The lease concluded on 12 May 2099. Taking into account 74 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.