With a domestic leasehold premises in Easthampstead, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are less than eighty years left. Leasehold owners in Easthampstead with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When a lease has under eighty years outstanding, under the current statute the landlord can calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Easthampstead can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 in-depth market knowledge procuring Easthampstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathaniel owned a conversion flat in Easthampstead on the market with a lease of a few days over fifty eight years remaining. Nathaniel on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Spring we were called by Mr and Mrs. S Smith , who bought a garden flat in Easthampstead in October 2011. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable properties in Easthampstead with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 billed monthly. The lease end date was in 2097. Having 72 years remaining we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
Last Autumn we were e-mailed by Dr Danielle Clarke , who owned a one bedroom flat in Easthampstead in July 1997. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Similar homes in Easthampstead with 100 year plus lease were valued around £233,200. The average ground rent payable was £60 billed per annum. The lease lapsed on 4 August 2086. Considering the 61 years remaining we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 plus costs.