It’s a harsh certainty that a Easton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Easton property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Easton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Using our service gives you better control over the value of your Easton leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her purpose-built apartment in Easton, Millie commenced the lease extension process as the 80 year mark was rapidly coming. The legal work was finalised in February 2011. The landlord’s costs were kept to an absolute minimum.
Ms F Harris acquired a garden flat in Easton in October 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Similar premises in Easton with 100 year plus lease were worth £200,800. The average ground rent payable was £65 billed per annum. The lease expired in 2085. Given that there were 60 years left we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including expenses.
Last month we were phoned by Dr L Richardson , who completed a first floor apartment in Easton in May 2012. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparable flats in Easton with an extended lease were worth £255,000. The average amount of ground rent was £50 invoiced per annum. The lease elapsed in 2096. Taking into account 71 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.