The re-sale value of a leasehold property in Eastcote depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed well before the 80 year threshold. Statute enables Eastcote qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
|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.|
|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;
|Birmingham Midshires||Minimum 70 years from the date of the mortgage.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|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.|
Lease extensions in Eastcote can be a difficult process. We recommend you procure guidance from a lawyer 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 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.
Subsequent to unsuccessful negotiations with the freeholder of her studio flat in Eastcote, Kate commenced the lease extension process as the eighty year threshold was rapidly advancing. The legal work completed in September 2011. The landlord’s costs were negotiated to under 550 pounds.
Last Autumn we were called by Mr and Mrs. S Mercier , who was assigned a lease of a one bedroom apartment in Eastcote in July 1997. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar residencies in Eastcote with 100 year plus lease were valued around £235,200. The average ground rent payable was £45 billed annually. The lease finished in 2088. Considering the 66 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 53.26 years.