Eastcote leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Eastcote residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Eastcote you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Eastcote flat owner with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Eastcote can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 procuring Eastcote lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Toby, started to get close to the 80-year threshold with the lease on his first floor apartment in Eastcote. Having bought his home 19 years previously, the unexpired term was of minimal interest. As luck would have it, it dawned on him that he would imminently be paying way over the odds for a lease extension. Toby was able to extend his lease just under the wire last May. Toby and the freeholder in the end agreed on an amount of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £1,025.
Mr and Mrs. T Moreau owned a garden apartment in Eastcote in February 1995. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar homes in Eastcote with an extended lease were worth £275,000. The mid-range ground rent payable was £55 billed every twelve months. The lease lapsed in 2103. Given that there were 77 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
An example of a Lease Extension matter before the tribunal for a Eastcote property 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 number of years remaining on the existing lease(s) was 53.26 years.