The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Eastcote have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Eastcote lease extension. Putting off the costs today simply increases the premium you will ultimately be required to pay for a lease extension.
Leasehold premises in Eastcote with more than 100 years remaining on the lease are often referred to as ‘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 buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Eastcote can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Eastcote lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago William, came dangerously close to the eighty-year threshold with the lease on his leasehold apartment in Eastcote. Having bought his home two decades ago, the length of the lease was of no interest. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. William was able to extend his lease just under the wire last April. William and the freeholder eventually agreed on sum of £6,000 . If the lease had descended lower than 80 years, the premium would have escalated by a minimum £950.
Last Spring we were contacted by Mrs Mollie Morris , who owned a recently refurbished apartment in Eastcote in September 1996. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable premises in Eastcote with a long lease were worth £254,200. The average amount of ground rent was £60 invoiced monthly. The lease lapsed in 2076. Given that there were 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including professional charges.
An example of a Lease Extension case for a Eastcote flat is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case was in relation to 1 flat. The unexpired lease term was 53.26 years.