Long Eaton residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Long Eaton,the lease extension lawyers 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.
Last Autumn Milo, came precariously close to the eighty-year threshold with the lease on his studio apartment in Long Eaton. Having bought his property two decades ago, the lease term was of no interest. As luck would have it, he recognised he needed to take action soon on a lease extension. Milo arranged for a lease extension just ahead of time last September. Milo and the landlord who owned the flat above eventually settled on an amount of £5,000 . If he not met the deadline, the premium would have gone up by a minimum £850.
In 2014 we were approached by Dr G Morel who, having bought a purpose-built apartment in Long Eaton in September 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparative residencies in Long Eaton with 100 year plus lease were valued around £243,000. The mid-range ground rent payable was £65 billed quarterly. The lease finished in 2089. Given that there were 63 years outstanding we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of legals.
Last Spring we were called by Mr and Mrs. S Carter , who bought a one bedroom flat in Long Eaton in July 1999. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Identical premises in Long Eaton with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 billed per annum. The lease lapsed in 2078. Considering the 52 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of fees.