The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Eccles have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. Do think carefully before delaying your Eccles lease extension. Putting off the costs now simply escalates the price you will ultimately have to pay for a lease extension.
Leasehold premises in Eccles with in excess of one hundred years outstanding on the lease are often referred to as ‘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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 conveyancing solicitor and surveyor with experience in this area.
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 procuring Eccles lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the freeholder of her basement flat in Eccles, Isobel started the lease extension process as the 80 year threshold was quickly approaching. The lease extension was concluded in February 2014. The freeholder’s fees were kept to an absolute minimum.
Last year we were e-mailed by Dr Kyle Clarke , who was assigned a lease of a one bedroom flat in Eccles in July 2002. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Eccles with an extended lease were valued around £200,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease elapsed on 28 April 2103. Taking into account 77 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.
In 2014 we were phoned by Dr K Stewart who, having took over the lease of a basement flat in Eccles in March 2008. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable flats in Eccles with 100 year plus lease were valued about £260,200. The mid-range ground rent payable was £65 invoiced annually. The lease concluded in 2092. Taking into account 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 not including legals.