Eden Park leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Eden Park will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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; |
| 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. |
| 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. |
| 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. |
Retaining our service will provide you better control over the value of your Eden Park leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the landlord of her basement flat in Eden Park, Isobel started the lease extension process as the eighty year deadline was rapidly approaching. The transaction was finalised in July 2014. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. S Davies purchased a studio apartment in Eden Park in October 1996. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Identical properties in Eden Park with a long lease were in the region of £208,200. The mid-range amount of ground rent was £65 billed annually. The lease concluded in 2087. Having 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Eden Park flat is 26 Manor Road in July 2010. the Tribunal decided that price to be paid for the freehold was £12,420 This case affected 2 flats. The unexpired term as at the valuation date was 76.75 and 88.83.