Eccleshall leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Eccleshall enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Eccleshall you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Eccleshall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her studio apartment in Eccleshall, Natalie started the lease extension process just as the lease was approaching the all-important eighty-year threshold. The legal work completed in November 2013. The landlord’s fees were kept to an absolute minimum.
Last Winter we were e-mailed by Ms W Bernard , who completed a garden apartment in Eccleshall in June 2006. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparative residencies in Eccleshall with an extended lease were valued about £243,000. The average amount of ground rent was £65 invoiced per annum. The lease ended in 2088. Having 63 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus professional charges.
In 2013 we were e-mailed by Dr O Adams who, having acquired a first floor apartment in Eccleshall in November 2006. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable homes in Eccleshall with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced monthly. The lease concluded in 2077. Given that there were 52 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including costs.