The only way is down when it comes to Eaton Bray lease terms. Eaton Bray properties that have a lease term fewer than 80 years will drop in market price even faster, and the cost of extending your lease will rise.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Eaton Bray leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Connor was the the leasehold owner of a 2 bedroom apartment in Eaton Bray being sold with a lease of just over sixty years outstanding. Connor informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Connor to invoke his statutory right. Connor obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last month we were e-mailed by Dr Alicia Nguyen , who acquired a studio flat in Eaton Bray in May 2012. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable flats in Eaton Bray with an extended lease were valued around £254,200. The average amount of ground rent was £60 collected monthly. The lease elapsed on 19 November 2076. Given that there were 51 years unexpired we calculated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 plus professional charges.
In 2012 we were approached by Mr and Mrs. M Fournier who, having was assigned a lease of a first floor flat in Eaton Bray in April 1996. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparative premises in Eaton Bray with 100 year plus lease were in the region of £215,600. The average ground rent payable was £45 billed per annum. The lease expired on 4 November 2087. Considering the 62 years as a residual term we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.