Eastcote leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Eastcote will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Eastcote with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with procure Eastcote lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Luke owned a conversion flat in Eastcote on the market with a lease of a little over 72 years unexpired. Luke on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luke to invoke his statutory right. Luke procured expert advice and secured satisfactory resolution informally and sell the flat.
Last Summer we were called by Dr Phoebe King , who was assigned a lease of a recently refurbished flat in Eastcote in January 2003. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical properties in Eastcote with 100 year plus lease were valued about £280,000. The average ground rent payable was £55 collected yearly. The lease finished on 24 September 2102. Taking into account 78 years left we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.
An example of a Lease Extension decision for a Eastcote property is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case affected 1 flat. The remaining number of years on the lease was 53.26 years.