Eccles leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Eccles will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Eccles with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 will provide you better control over the value of your Eccles leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Archie, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Eccles. Having bought his home two decades ago, the length of the lease was of no interest. Fortunately, he became aware that he would soon be paying an escalated premium for Extending the lease. Archie was able to extend his lease at the eleventh hour last September. Archie and the freeholder via the management company in the end agreed on sum of £6,000 . If the lease had fallen lower than eighty years, the price would have become more costly by a minimum £1,125.
Last month we were approach by Dr M Brown , who completed a purpose-built flat in Eccles in May 2009. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparative residencies in Eccles with an extended lease were worth £174,200. The average amount of ground rent was £55 billed annually. The lease concluded in 2076. Given that there were 51 years as a residual term we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus legals.
In 2010 we were e-mailed by Mr and Mrs. M García who, having moved into a first floor apartment in Eccles in January 1999. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Eccles with a long lease were worth £285,000. The mid-range ground rent payable was £45 collected quarterly. The lease expired on 25 March 2096. Taking into account 71 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.