Eccles leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Eccles will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Eccles with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Eccles can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Eccles lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted negotiations with the freeholder of her studio flat in Eccles, Emma initiated the lease extension process as the 80 year mark was swiftly advancing. The legal work was finalised in January 2015. The landlord’s fees were kept to an absolute minimum.
Last month we were contacted by Mr Sebastian Anderson , who took over the lease of a studio apartment in Eccles in February 2001. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Eccles with an extended lease were in the region of £171,800. The mid-range ground rent payable was £55 collected every twelve months. The lease terminated in 2075. Taking into account 50 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.
In 2010 we were approached by Mr and Mrs. O Sánchez who, having purchased a one bedroom flat in Eccles in March 2010. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Eccles with a long lease were in the region of £280,000. The average amount of ground rent was £45 invoiced annually. The lease expired on 14 October 2095. Taking into account 70 years left we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.