Eccleston 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 gets more expensive. It is the case that most Eccleston tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Eccleston you really ought to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Lease extensions in Eccleston can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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 dealing with Eccleston 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 6 months of lengthy negotiations with the freeholder of her studio apartment in Eccleston, Tia commenced the lease extension process as the 80 year threshold was rapidly advancing. The transaction completed in June 2009. The freeholder’s fees were negotiated to a tad over 600 pounds.
Mr and Mrs. T Turner completed a garden apartment in Eccleston in February 2002. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Eccleston with an extended lease were in the region of £254,200. The average ground rent payable was £60 invoiced quarterly. The lease concluded on 21 April 2077. Having 51 years left we calculated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus expenses.
Last month we were called by Mrs Y Green , who purchased a garden flat in Eccleston in September 2002. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Eccleston with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected yearly. The lease concluded on 23 February 2088. Taking into account 62 years outstanding we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including professional charges.