Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Long Eaton. Clearly, the length of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Long Eaton have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give careful deliberation before delaying your Long Eaton lease extension. Putting off that expense now likely increases the price you will eventually have to pay to extend your lease
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you better control over the value of your Long Eaton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finn was the the leasehold proprietor of a conversion apartment in Long Eaton on the market with a lease of just over 61 years remaining. Finn informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Finn to invoke his statutory right. Finn obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Mr and Mrs. U Vincent moved into a studio flat in Long Eaton in June 2003. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar premises in Long Eaton with an extended lease were worth £285,000. The average amount of ground rent was £45 collected quarterly. The lease elapsed in 2097. Considering the 71 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
Last Winter we were e-mailed by Mr and Mrs. H García , who completed a ground floor apartment in Long Eaton in October 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Long Eaton with 100 year plus lease were in the region of £225,800. The average amount of ground rent was £60 billed yearly. The lease elapsed in 2086. Taking into account 60 years outstanding we calculated the premium to the freeholder to extend the lease to be within £25,700 and £29,600 not including professional charges.