Easingwold leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Easingwold tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Easingwold you really ought to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Retaining our service gives you increased control over the value of your Easingwold leasehold, as your property will be more valuable and marketable in respect of lease length should you wish 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.
Off the back of unsuccessful negotiations with the freeholder of her leasehold flat in Easingwold, Isabella commenced the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension was finalised in February 2013. The freeholder’s fees were negotiated to under 450 GBP.
Mr and Mrs. U Hall moved into a one bedroom apartment in Easingwold in March 1999. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Easingwold with a long lease were worth £300,000. The mid-range ground rent payable was £50 billed monthly. The lease ran out in 2102. Given that there were 76 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
Last month we were contacted by Mr Eliot Moreau , who acquired a ground floor flat in Easingwold in August 2003. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical homes in Easingwold with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out on 11 November 2091. Taking into account 65 years unexpired we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of costs.