Eastleigh residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Eastleigh can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 procuring Eastleigh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Andrew, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Eastleigh. In buying his property twenty years ago, the unexpired term was of little significance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Andrew extended the lease at the eleventh hour last September. Andrew and the freeholder eventually settled on an amount of £6,000 . If he had missed the deadline, the price would have increased by a minimum £950.
Dr I White acquired a studio flat in Eastleigh in January 1996. The question was if we could estimate the price would be to extend the lease by an additional years. Identical flats in Eastleigh with a long lease were in the region of £216,000. The average ground rent payable was £60 invoiced quarterly. The lease ended in 2083. Taking into account 58 years remaining we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus expenses.
Last month we were contacted by Mrs Samantha Murphy , who completed a one bedroom flat in Eastleigh in January 2007. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Identical homes in Eastleigh with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease concluded on 16 January 2103. Having 78 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.