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 your lease becomes more expensive. The majority of owners of residential leasehold property in Eccleston and St Helens enjoy rights under legislation to extend the terms of their 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 left. There are compelling reasons why a Eccleston and St Helens leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Eccleston and St Helens with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
The conveyancers that we work with procure Eccleston and St Helens 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 lawyer we work with provide it.
Off the back of unsuccessful negotiations with the landlord of her studio apartment in Eccleston and St Helens, Jade started the lease extension process just as the lease was coming close to the crucial 80-year threshold. The lease extension was finalised in July 2008. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were phoned by Mrs A Robinson who, having moved into a one bedroom apartment in Eccleston and St Helens in March 2012. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical homes in Eccleston and St Helens with a long lease were valued around £270,000. The average ground rent payable was £55 collected quarterly. The lease came to a finish in 2100. Considering the 74 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
In 2011 we were e-mailed by Mr and Mrs. K Lambert who, having moved into a studio apartment in Eccleston and St Helens in June 1998. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Identical properties in Eccleston and St Helens with 100 year plus lease were valued about £166,400. The mid-range ground rent payable was £60 collected monthly. The lease came to a finish in 2080. Having 54 years remaining we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of legals.