Chances are that where you own a flat in Eastleigh you actually own a long leasehold interest over your property
Leasehold properties in Eastleigh with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you increased control over the value of your Eastleigh leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Mason, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Eastleigh. Having bought his flat 18 years ago, the lease term was of little significance. Thankfully, it dawned on him that he would soon be paying an escalated premium for a lease extension. Mason arranged for a lease extension just ahead of time in January. Mason and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the sum would have gone up by at least £900.
Last year we were called by Mr and Mrs. J Thompson , who bought a garden flat in Eastleigh in September 2006. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Eastleigh with an extended lease were worth £295,000. The average ground rent payable was £50 collected every twelve months. The lease ended on 18 July 2101. Considering the 75 years left we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
Last Christmas we were approach by Dr Y Wood , who owned a one bedroom apartment in Eastleigh in October 1999. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable homes in Eastleigh with a long lease were valued around £250,400. The average ground rent payable was £65 collected every twelve months. The lease expired in 2090. Considering the 64 years left we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus fees.