Eaglescliffe leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Eaglescliffe residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Eaglescliffe you should check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Eaglescliffe leasehold, as your property will be more valuable and saleable in terms 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.
After lengthy discussions with the landlord of her one bedroom flat in Eaglescliffe, Phoebe initiated the lease extension process as the 80 year threshold was swiftly nearing. The lease extension completed in June 2015. The landlord’s charges were restricted to about 650 GBP.
In 2013 we were phoned by Mr and Mrs. K López who, having purchased a garden apartment in Eaglescliffe in February 1999. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Identical homes in Eaglescliffe with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced yearly. The lease expired in 2075. Given that there were 50 years left we estimated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus fees.
In 2012 we were called by Dr A Miller who, having bought a studio flat in Eaglescliffe in February 2007. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparable properties in Eaglescliffe with an extended lease were valued around £203,200. The average ground rent payable was £65 billed quarterly. The lease terminated in 2086. Given that there were 61 years outstanding we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of legals.