The market value of a leasehold property in Eccles depends on how long the lease has left to run. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded in advance of the 80 year mark. Statute entitles Eccles qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you increased control over the value of your Eccles leasehold, as your property will be more valuable and marketable in terms of 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.
After lengthy correspondence with the freeholder of her two bedroom apartment in Eccles, Lauren initiated the lease extension process as the 80 year deadline was quickly advancing. The transaction completed in January 2011. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. H Fournier completed a ground floor apartment in Eccles in April 2004. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative flats in Eccles with a long lease were in the region of £280,000. The average ground rent payable was £45 invoiced per annum. The lease ran out in 2095. Given that there were 70 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.
Dr Charlie Ramírez owned a first floor apartment in Eccles in May 2001. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical residencies in Eccles with 100 year plus lease were valued about £223,400. The average ground rent payable was £60 invoiced quarterly. The lease terminated in 2084. Taking into account 59 years outstanding we approximated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of expenses.