Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Eastcote. Clearly, the length of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Eastcote have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give due attention before delaying your Eastcote lease extension. Putting off that expense now only increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 also be not less than 75 years at the outset 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 |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Eastcote,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Eastcote valuers.
14 months ago Finley, came seriously near to the eighty-year mark with the lease on his studio apartment in Eastcote. Having bought his flat 19 years ago, the length of the lease was of minimal concern. by good luck, he noticed he needed to take steps soon on a lease extension. Finley extended the lease just under the wire in January. Finley and the landlord in the end settled on an amount of £5,000 . If the lease had slipped to less than eighty years, the figure would have become more costly by at least £850.
In 2009 we were e-mailed by Mr and Mrs. L Campbell who, having was assigned a lease of a one bedroom apartment in Eastcote in October 2008. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar premises in Eastcote with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded in 2095. Taking into account 70 years remaining we calculated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 plus legals.
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 related to 1 flat. The unexpired term was 53.26 years.