Eastcote leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Eastcote will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder 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.
In recent months Sam, started to get near to the eighty-year threshold with the lease on his basement apartment in Eastcote. Having bought his flat two decades ago, the unexpired term was of minimal concern. by good luck, he realised he needed to take action soon on Extending the lease. Sam was able to extend his lease just ahead of time in March. Sam and the freeholder via the management company in the end settled on an amount of £5,000 . If he had missed the deadline, the price would have gone up by a minimum £1,000.
Dr F Leroy moved into a one bedroom flat in Eastcote in March 1998. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar flats in Eastcote with a long lease were in the region of £227,800. The average ground rent payable was £45 billed per annum. The lease elapsed in 2091. Given that there were 65 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.
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 related to 1 flat. The unexpired term was 53.26 years.