With a long leasehold premises in Eastcote, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Anyone in Eastcote with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has under eighty years left, under the relevant legislation the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Eastcote with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Daniel owned a conversion apartment in Eastcote on the market with a lease of a little over fifty eight years left. Daniel informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2014 we were approached by Mr and Mrs. G Johnson who, having was assigned a lease of a newly refurbished flat in Eastcote in October 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Similar residencies in Eastcote with 100 year plus lease were valued around £256,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease elapsed on 21 August 2078. Having 52 years remaining we estimated the premium to the landlord for the lease extension to be within £39,000 and £45,000 plus fees.
An example of a Lease Extension matter before the tribunal for a Eastcote residence is Flat 72 Queens Walk in January 2013. The Tribunals calculated the premium payable to be £22,090. This case affected 1 flat. The unexpired term was 53.26 years.