With a residential leasehold premises in Eastleigh, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are less than 80 years remaining. Residents in Eastleigh with a lease nearing 81 years left should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the current Act the landlord can calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Eastleigh can be a difficult process. We recommend you obtain guidance 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 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.
Sam was the the leasehold proprietor of a 2 bedroom apartment in Eastleigh being marketed with a lease of just over 61 years left. Sam on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sam to exercise his statutory right. Sam obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
In 2009 we were phoned by Mr R Martinez who, having bought a basement apartment in Eastleigh in November 1999. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Eastleigh with 100 year plus lease were in the region of £210,000. The average amount of ground rent was £50 invoiced per annum. The lease elapsed in 2106. Considering the 80 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2010 we were approached by Mr and Mrs. O Dupont who, having acquired a one bedroom flat in Eastleigh in April 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative properties in Eastleigh with a long lease were worth £275,000. The average ground rent payable was £45 billed every twelve months. The lease ended on 4 October 2095. Given that there were 69 years unexpired we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.