The market value of Eaton Bray leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is less than 80 years
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Eaton Bray can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Eaton Bray lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful correspondence with the landlord of her leasehold flat in Eaton Bray, Katherine started the lease extension process just as the lease was nearing the critical eighty-year threshold. The lease extension was finalised in November 2006. The freeholder’s charges were restricted to about 450 GBP.
Last Autumn we were called by Dr E Rodríguez , who purchased a basement flat in Eaton Bray in September 2008. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative homes in Eaton Bray with a long lease were worth £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease end date was on 18 November 2095. Taking into account 70 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Dr Alfie Reed owned a garden apartment in Eaton Bray in October 1998. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar premises in Eaton Bray with a long lease were worth £246,800. The average ground rent payable was £60 invoiced per annum. The lease expiry date was on 21 April 2075. Taking into account 50 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of expenses.