Eaglescliffe leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Eaglescliffe will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Eaglescliffe with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Retaining our service will provide you better control over the value of your Eaglescliffe leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ollie owned a studio flat in Eaglescliffe on the market with a lease of a few days over sixty years left. Ollie informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last month we were contacted by Mr and Mrs. K François , who took over the lease of a basement flat in Eaglescliffe in March 2012. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative homes in Eaglescliffe with a long lease were worth £250,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed in 2094. Having 69 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Dr John Johnson took over the lease of a basement apartment in Eaglescliffe in January 2009. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Eaglescliffe with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 collected monthly. The lease elapsed on 3 October 2105. Having 80 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.