As the length of the unexpired term of a Eastleigh domestic lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Eastleigh will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property 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. |
| 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. |
| 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. |
Lease extensions in Eastleigh can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 Eastleigh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy discussions with the landlord of her ground floor flat in Eastleigh, Alexandra commenced the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The legal work was finalised in July 2007. The landlord’s charges were negotiated to approximately 500 pounds.
In 2010 we were e-mailed by Dr C Torres who, having owned a ground floor flat in Eastleigh in June 2000. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar flats in Eastleigh with an extended lease were valued around £206,200. The average ground rent payable was £55 billed every twelve months. The lease terminated in 2082. Considering the 56 years left we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including fees.
Last Winter we were contacted by Mr Archie Richardson , who purchased a garden flat in Eastleigh in February 1997. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Similar residencies in Eastleigh with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expiry date was on 6 April 2102. Having 76 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.