Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Eaglescliffe. Clearly, the length of lease left reduces over time. This is often ignored and only raises itself as an issue when the property needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Eaglescliffe have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful attention before delaying your Eaglescliffe lease extension. Holding off that expense now simply increases the price you will eventually incur for a lease extension
Leasehold properties in Eaglescliffe with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 conveyancing solicitors 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 lawyer we work with provide it.
Lewis was the the leasehold owner of a studio apartment in Eaglescliffe on the market with a lease of fraction over 61 years remaining. Lewis on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Autumn we were e-mailed by Mr Ali Davis , who completed a one bedroom apartment in Eaglescliffe in July 2006. We are asked if we could estimate the price would be for a ninety year lease extension. Identical flats in Eaglescliffe with a long lease were valued about £220,400. The mid-range amount of ground rent was £45 billed every twelve months. The lease expiry date was in 2090. Having 64 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus expenses.
Last year we were contacted by Mr and Mrs. H Leroy , who completed a first floor apartment in Eaglescliffe in March 1998. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Eaglescliffe with an extended lease were valued about £270,000. The average amount of ground rent was £55 billed yearly. The lease ended on 5 February 2101. Having 75 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.