For those whose Eaglescliffe home is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
Leasehold premises in Eaglescliffe with over one hundred years unexpired 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| TSB | |
| Royal Bank of Scotland |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
After protracted correspondence with the freeholder of her basement apartment in Eaglescliffe, Lauren commenced the lease extension process just as the lease was approaching the all-important 80-year mark. The transaction completed in November 2012. The landlord’s charges were restricted to slightly above 550 pounds.
Last Christmas we were e-mailed by Mr and Mrs. H Laurent , who took over the lease of a ground floor flat in Eaglescliffe in January 2000. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Eaglescliffe with a long lease were worth £166,400. The average ground rent payable was £60 billed yearly. The lease finished on 6 April 2080. Having 54 years remaining we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including expenses.
In 2014 we were approached by Mr and Mrs. U Pérez who, having acquired a one bedroom apartment in Eaglescliffe in July 1998. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar homes in Eaglescliffe with an extended lease were worth £232,800. The average ground rent payable was £45 invoiced every twelve months. The lease expiry date was in 2091. Considering the 65 years left we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.