The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Eaglescliffe may extend the lease for an additional 90 years in accordance with statute. Do think carefully before delaying your Eaglescliffe lease extension. Postponing that expense now simply escalates the amount you will ultimately be required to pay to extend the lease.
Leasehold premises in Eaglescliffe with over 100 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Coventry Building Society | 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Eaglescliffe leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Omar, started to get close to the 80-year mark with the lease on his purpose- built apartment in Eaglescliffe. Having purchased his home two decades ago, the unexpired term was of minimal relevance. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Omar arranged for a lease extension just under the wire last April. Omar and the freeholder in the end agreed on an amount of £5,000 . If the lease had slipped to less than eighty years, the figure would have become more costly by a minimum £1,075.
In 2011 we were contacted by Mr Toby Petit who, having took over the lease of a basement flat in Eaglescliffe in June 2003. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative properties in Eaglescliffe with a long lease were worth £256,600. The mid-range ground rent payable was £60 invoiced annually. The lease lapsed in 2078. Considering the 52 years remaining we approximated the compensation to the landlord to extend the lease to be between £41,800 and £48,400 not including expenses.
Last Spring we were called by Dr S Scott , who took over the lease of a garden apartment in Eaglescliffe in September 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Eaglescliffe with 100 year plus lease were in the region of £215,600. The mid-range amount of ground rent was £45 billed quarterly. The lease finished on 24 May 2088. Given that there were 62 years unexpired we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of fees.