Eccleston and St Helens leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Eccleston and St Helens residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Eccleston and St Helens you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Eccleston and St Helens flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Eccleston and St Helens,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Eccleston and St Helens valuers.
Kai owned a high value apartment in Eccleston and St Helens on the market with a lease of just over fifty eight years unexpired. Kai on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were called by Ms H Phillips , who took over the lease of a basement apartment in Eccleston and St Helens in March 1996. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Similar premises in Eccleston and St Helens with 100 year plus lease were worth £215,600. The average amount of ground rent was £45 invoiced yearly. The lease terminated in 2088. Having 62 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 plus expenses.
Last Winter we were contacted by Dr Nathaniel Edwards , who owned a studio apartment in Eccleston and St Helens in September 2000. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar residencies in Eccleston and St Helens with a long lease were in the region of £265,000. The average amount of ground rent was £50 billed monthly. The lease elapsed on 8 March 2099. Having 73 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.