Easingwold leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Easingwold enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Easingwold you should check if your lease has between 70 and ninety years left. There are good reasons why a Easingwold flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Easingwold leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her basement flat in Easingwold, Kate started the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work was finalised in July 2006. The landlord’s charges were restricted to approximately 600 GBP.
Last Autumn we were e-mailed by Mr and Mrs. B Patel , who bought a garden flat in Easingwold in January 2000. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Easingwold with 100 year plus lease were valued around £181,600. The average amount of ground rent was £55 billed annually. The lease expired in 2077. Given that there were 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including legals.
Dr Ethan Sánchez purchased a basement flat in Easingwold in February 2007. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Easingwold with a long lease were worth £290,000. The mid-range ground rent payable was £45 invoiced per annum. The lease elapsed on 13 August 2097. Taking into account 72 years remaining we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus expenses.