Eccleshall leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Eccleshall will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Eccleshall with over 100 years unexpired 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 situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Two years ago Jasper, started to get close to the 80-year mark with the lease on his basement flat in Eccleshall. Having bought his property two decades ago, the unexpired term was of little bearing. As luck would have it, he realised he needed to take action soon on a lease extension. Jasper was able to extend his lease at the eleventh hour last April. Jasper and the landlord in the end agreed on a premium of £5,000 . If the lease had descended to less than eighty years, the premium would have escalated by at least £900.
Dr Omar James owned a basement apartment in Eccleshall in June 2000. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Eccleshall with a long lease were in the region of £210,000. The average ground rent payable was £50 billed quarterly. The lease expiry date was in 2106. Given that there were 80 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.
Last Christmas we were e-mailed by Mr and Mrs. L Rogers , who purchased a ground floor apartment in Eccleshall in May 1998. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative properties in Eccleshall with a long lease were valued about £275,000. The average amount of ground rent was £45 invoiced annually. The lease terminated in 2095. Having 69 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.