Eastwood leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease drops below eighty years - otherwise a higher amount will be due. Flat owners in Eastwood will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Eastwood can be a difficult process. We recommend you secure professional help 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 a wealth of experience dealing with Eastwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Oliver, came critically near to the 80-year mark with the lease on his first floor apartment in Eastwood. Having purchased his property 19 years ago, the unexpired term was of no importance. by good luck, he realised he needed to take steps soon on Extending the lease. Oliver extended the lease just ahead of time last May. Oliver and the freeholder in the end agreed on an amount of £5,500 . If the lease had slipped below 80 years, the amount would have increased by at least £975.
Last Christmas we were phoned by Dr G Jackson , who owned a recently refurbished flat in Eastwood in November 1997. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable flats in Eastwood with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease terminated on 2 May 2092. Given that there were 66 years outstanding we estimated the premium to the landlord to extend the lease to be within £16,200 and £18,600 not including fees.
Mrs P Bernard was assigned a lease of a purpose-built apartment in Eastwood in February 2010. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparative premises in Eastwood with a long lease were worth £198,800. The mid-range ground rent payable was £55 invoiced every twelve months. The lease expired on 27 March 2081. Given that there were 55 years outstanding we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of legals.