Unfortunately that a Eccleston and St Helens residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Eccleston and St Helens property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Eccleston and St Helens will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Eccleston and St Helens,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Eccleston and St Helens valuers.
Last Christmas Owen, came seriously near to the eighty-year threshold with the lease on his ground floor apartment in Eccleston and St Helens. In buying his property two decades ago, the length of the lease was of little interest. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Owen arranged for a lease extension at the eleventh hour last September. Owen and the freeholder eventually settled on sum of £6,000 . If the lease had descended to less than 80 years, the amount would have gone up by a minimum £875.
Mr and Mrs. U Turner acquired a newly refurbished apartment in Eccleston and St Helens in October 2005. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar flats in Eccleston and St Helens with a long lease were worth £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease concluded in 2076. Given that there were 50 years outstanding we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 plus expenses.
Mr and Mrs. O Thompson purchased a studio apartment in Eccleston and St Helens in August 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Eccleston and St Helens with 100 year plus lease were valued about £208,200. The average amount of ground rent was £65 collected quarterly. The lease terminated on 14 April 2087. Considering the 61 years unexpired we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.