On the balance of probabilities if you own a flat in Eccles you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Engaging our service will provide you enhanced control over the value of your Eccles leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Teddy, started to get near to the eighty-year threshold with the lease on his basement flat in Eccles. Having bought his property 18 years ago, the lease term was of no significance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Teddy extended the lease just in the nick of time last August. Teddy and the freeholder via the management company eventually agreed on the final figure of £6,000 . If the lease had fallen below eighty years, the amount would have gone up by a minimum £850.
Last Winter we were contacted by Mr and Mrs. R Evans , who moved into a one bedroom flat in Eccles in August 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Eccles with a long lease were worth £225,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease termination date was on 2 June 2086. Given that there were 60 years unexpired we calculated the premium to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of expenses.
Last Summer we were called by Dr K Kelly , who owned a one bedroom apartment in Eccles in June 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Eccles with a long lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease elapsed in 2106. Given that there were 80 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.