Eastwood leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Eastwood enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Eastwood you must see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Eastwood,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Eastwood valuers.
Two years ago Elijah, came seriously near to the 80-year mark with the lease on his basement apartment in Eastwood. In buying his home two decades ago, the length of the lease was of no significance. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Elijah was able to extend his lease just ahead of time in September. Elijah and the freeholder in the end agreed on a premium of £6,000 . If he not met the deadline, the price would have escalated by at least £1,050.
Mr Leon Lee purchased a garden flat in Eastwood in January 2001. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Similar homes in Eastwood with a long lease were in the region of £275,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease elapsed in 2094. Taking into account 69 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
In 2011 we were e-mailed by Mr and Mrs. J Cooper who, having took over the lease of a garden apartment in Eastwood in January 2009. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparative flats in Eastwood with an extended lease were worth £216,000. The mid-range amount of ground rent was £60 billed annually. The lease elapsed on 9 March 2083. Having 58 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.