With a residential leasehold property in Eaglescliffe, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Leasehold owners in Eaglescliffe with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has less than eighty years remaining, under the current statute the freeholder is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Eaglescliffe with in excess of one hundred years remaining 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancers that we work with handle Eaglescliffe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Eli was the the leasehold owner of a 2 bedroom flat in Eaglescliffe being marketed with a lease of fraction over fifty eight years outstanding. Eli on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Eli to invoke his statutory right. Eli procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last January we were e-mailed by Ms S Girard , who completed a studio flat in Eaglescliffe in January 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparable properties in Eaglescliffe with 100 year plus lease were valued about £210,600. The average ground rent payable was £45 collected annually. The lease lapsed in 2087. Having 62 years left we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 not including expenses.
Last month we were approach by Mr M Khan , who was assigned a lease of a purpose-built flat in Eaglescliffe in March 2005. We are asked if we could estimate the price would be to extend the lease by ninety years. Similar residencies in Eaglescliffe with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease ran out in 2098. Given that there were 73 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.