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 the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Eccleshall residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Eccleshall you must see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 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
Leasehold residencies in Eccleshall with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Eccleshall can be a difficult process. We recommend you procure professional help from a conveyancer 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 Eccleshall 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 correspondence with the freeholder of her two bedroom apartment in Eccleshall, Caitlin commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The legal work was concluded in November 2015. The freeholder’s charges were restricted to approximately 600 GBP.
Last Winter we were approach by Mr E Mason , who took over the lease of a ground floor flat in Eccleshall in June 1995. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar homes in Eccleshall with 100 year plus lease were worth £300,000. The average ground rent payable was £50 billed yearly. The lease terminated in 2100. Having 75 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.
Last May we were e-mailed by Mrs Bethan Mitchell , who completed a purpose-built flat in Eccleshall in March 2004. The question was if we could approximate the price would be to prolong the lease by an additional years. Comparable homes in Eccleshall with 100 year plus lease were worth £250,400. The average ground rent payable was £65 collected quarterly. The lease ended in 2089. Taking into account 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus fees.