Long Eaton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Long Eaton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Long Eaton you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Long Eaton with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Long Eaton,the lease extension lawyers that we work with will always be willing 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.
Last Spring Samuel, came precariously close to the eighty-year threshold with the lease on his two bedroom flat in Long Eaton. Having purchased his home two decades ago, the length of the lease was of little interest. As luck would have it, he recognised he would imminently be paying an escalated premium for a lease extension. Samuel was able to extend his lease just in the nick of time in April. Samuel and the freeholder via the management company ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the premium would have become more costly by a minimum £900.
In 2011 we were called by Dr L Green who, having acquired a ground floor flat in Long Eaton in May 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Long Eaton with an extended lease were in the region of £252,800. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out in 2090. Having 65 years left we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus fees.
Last Autumn we were phoned by Mr and Mrs. G Ali , who was assigned a lease of a ground floor flat in Long Eaton in June 2010. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparable properties in Long Eaton with a long lease were valued around £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed in 2079. Given that there were 54 years remaining we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of legals.