Eastwood leases on domestic deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Flat owners in Eastwood will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and steps to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Eastwood with in excess of one hundred years left 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service will provide you increased control over the value of your Eastwood leasehold, as your property will be more valuable and saleable in terms of lease length should you decide 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.
Two years ago Alexander, came precariously near to the 80-year threshold with the lease on his studio flat in Eastwood. In buying his flat two decades ago, the length of the lease was of little concern. by good luck, he became aware that he would imminently be paying way over the odds for Extending the lease. Alexander arranged for a lease extension just ahead of time in May. Alexander and the freeholder ultimately settled on the final figure of £6,000 . If the lease had slipped to less than 80 years, the premium would have escalated by at least £925.
Last Winter we were approach by Mr and Mrs. O Anderson , who completed a newly refurbished flat in Eastwood in August 2009. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable residencies in Eastwood with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £60 billed monthly. The lease finished in 2081. Having 56 years unexpired we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including costs.
In 2014 we were e-mailed by Mr Luke González who, having acquired a ground floor apartment in Eastwood in August 2011. The question was if we could approximate the price could be to prolong the lease by 90 years. Similar properties in Eastwood with an extended lease were worth £200,000. The average amount of ground rent was £50 billed yearly. The lease came to a finish on 20 April 2102. Taking into account 77 years left we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.