The value of Long Eaton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is below than eighty years
Leasehold properties in Long Eaton with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Irrespective of whether you are a tenant or a landlord in Long Eaton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Long Eaton valuers.
Half a year ago Adam, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Long Eaton. Having purchased his home 19 years previously, the length of the lease was of minimal relevance. As luck would have it, he became aware that he would soon be paying way over the odds for Extending the lease. Adam arranged for a lease extension at the eleventh hour last August. Adam and the freeholder via the managing agents ultimately settled on the final figure of £6,000 . If the lease had dipped to less than eighty years, the premium would have escalated by a minimum £950.
In 2011 we were phoned by Dr K Martinez who, having bought a basement flat in Long Eaton in May 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Long Eaton with a long lease were valued around £184,000. The average ground rent payable was £55 collected yearly. The lease concluded on 14 March 2079. Given that there were 53 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.
Last Summer we were approach by Dr Sebastian Laurent , who moved into a ground floor apartment in Long Eaton in August 1996. The question was if we could approximate the price would be to extend the lease by 90 years. Comparable homes in Long Eaton with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 billed quarterly. The lease elapsed in 2099. Given that there were 73 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.