There is no doubt about it a leasehold property in Eastcote is a wasting asset as a result of the shortening lease. Where the residual term has, over 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Eastcote will meet the qualifying criteria; that being said a conveyancer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Eastcote can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience 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.
During the course of the last few months Jonathan, started to get close to the 80-year threshold with the lease on his basement apartment in Eastcote. In buying his property 19 years ago, the length of the lease was of little interest. Luckily, he became aware that he would imminently be paying way over the odds for Extending the lease. Jonathan was able to extend his lease just ahead of time in May. Jonathan and the landlord ultimately settled on sum of £6,000 . If the lease had dropped below 80 years, the price would have increased by at least £1,100.
Last Spring we were e-mailed by Dr M Bernard , who completed a basement apartment in Eastcote in January 2003. The question was if we could estimate the premium could be for a 90 year lease extension. Similar properties in Eastcote with a long lease were worth £261,600. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed on 22 June 2077. Taking into account 52 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus expenses.
An example of a Lease Extension case for a Eastcote flat 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 residue of the current lease was 53.26 years.