With a residential leasehold premises in Eastcote, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Leasehold owners in Eastcote with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has less than eighty years left, under the relevant Act the freeholder can calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Eastcote with more than 100 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 property. In such circumstances there is often little to be gained by 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a landlord in Eastcote,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Eastcote valuers.
Twenty four months ago Logan, came dangerously near to the eighty-year threshold with the lease on his garden flat in Eastcote. In buying his property two decades ago, the unexpired term was of minimal bearing. by good luck, it dawned on him that he needed to take action soon on a lease extension. Logan extended the lease just under the wire last April. Logan and the freeholder via the management company subsequently agreed on sum of £5,000 . If he failed to meet the deadline, the price would have increased by a minimum £1,000.
Last March we were contacted by Ms Holly Ali , who was assigned a lease of a first floor apartment in Eastcote in September 2006. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparative residencies in Eastcote with 100 year plus lease were worth £183,600. The average ground rent payable was £65 billed quarterly. The lease elapsed on 2 March 2083. Having 57 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus professional charges.
An example of a Lease Extension decision for a Eastcote premises is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case related to 1 flat. The unexpired lease term was 53.26 years.