Eaton Bray leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Eaton Bray residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Eaton Bray you must investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Eaton Bray flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Eaton Bray with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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; |
| Chelsea Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Eaton Bray can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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.
Trailing lengthy correspondence with the landlord of her studio flat in Eaton Bray, Freya started the lease extension process as the eighty year deadline was swiftly coming. The lease extension was finalised in May 2008. The landlord’s fees were kept to an absolute minimum.
Dr Theo Thompson completed a purpose-built apartment in Eaton Bray in March 2005. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable residencies in Eaton Bray with a long lease were worth £191,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease expired on 9 November 2083. Given that there were 58 years left we approximated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus costs.
Mrs Rachael Parker owned a purpose-built flat in Eaton Bray in May 2000. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable residencies in Eaton Bray with an extended lease were worth £250,000. The average amount of ground rent was £50 billed quarterly. The lease came to a finish in 2094. Given that there were 69 years outstanding we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.