The closer a residential lease in Eastleigh nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than one hundred years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Eastleigh will qualify for this right; however a lawyer will be able to confirm whether 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.
Leasehold premises in Eastleigh with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Eastleigh can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.
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 dealing with Eastleigh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Mason, started to get near to the 80-year threshold with the lease on his ground floor flat in Eastleigh. In buying his property two decades ago, the length of the lease was of minimal concern. by good luck, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Mason arranged for a lease extension just in the nick of time in March. Mason and the freeholder ultimately agreed on sum of £5,500 . If he had missed the deadline, the premium would have become more costly by at least £1,000.
Last Autumn we were phoned by Dr V Norbert , who bought a basement flat in Eastleigh in May 2006. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Eastleigh with a long lease were worth £275,000. The average amount of ground rent was £65 collected per annum. The lease lapsed on 22 September 2094. Given that there were 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.
Mr and Mrs. J Rivera owned a studio flat in Eastleigh in April 2012. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Identical premises in Eastleigh with an extended lease were valued around £208,600. The mid-range ground rent payable was £60 invoiced yearly. The lease lapsed in 2083. Having 57 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including legals.