Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Easton. Clearly, the term of lease left shortens over time. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Easton have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful attention before delaying your Easton lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold premises in Easton with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Easton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Easton valuers.
Eliot owned a conversion flat in Easton on the market with a lease of fraction over 72 years left. Eliot on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eliot to exercise his statutory right. Eliot procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
In 2014 we were contacted by Ms Isobel Evans who, having moved into a first floor flat in Easton in April 2012. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Easton with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease concluded in 2097. Given that there were 72 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
Last Christmas we were approach by Dr Seth Hall , who completed a newly refurbished apartment in Easton in September 2010. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar residencies in Easton with an extended lease were worth £256,600. The average ground rent payable was £60 billed every twelve months. The lease lapsed on 19 April 2077. Taking into account 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of legals.