It’s an underpublicised certainty that a Easthampstead residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Easthampstead property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Easthampstead will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Coventry Building Society | 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. |
| 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 Easthampstead can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 a wealth of experience dealing with Easthampstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Seth, started to get close to the 80-year threshold with the lease on his ground floor apartment in Easthampstead. Having bought his home two decades ago, the lease term was of little interest. Fortunately, he became aware that he would imminently be paying an escalated premium for Extending the lease. Seth arranged for a lease extension at the eleventh hour last April. Seth and the landlord eventually agreed on the final figure of £5,000 . If the lease had slid to less than eighty years, the amount would have escalated by at least £1,000.
Mr and Mrs. M Cox owned a studio apartment in Easthampstead in April 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Easthampstead with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed in 2105. Having 79 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
Mr A Hill completed a studio apartment in Easthampstead in May 2004. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Identical flats in Easthampstead with a long lease were in the region of £275,000. The average ground rent payable was £65 billed annually. The lease lapsed in 2094. Taking into account 68 years outstanding we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.