The market value of Eccleston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is less than 80 years
Leasehold residencies in Eccleston with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with undertake Eccleston 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 conveyancer we work with provide it.
After protracted negotiations with the landlord of her two bedroom apartment in Eccleston, Amelia commenced the lease extension process as the eighty year threshold was swiftly approaching. The lease extension completed in August 2008. The landlord’s charges were negotiated to about 600 GBP.
Last Summer we were contacted by Dr R Rivera , who bought a first floor flat in Eccleston in August 2008. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparable homes in Eccleston with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish on 13 August 2104. Having 78 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.
Mr P Allen acquired a first floor flat in Eccleston in July 1997. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Identical premises in Eccleston with a long lease were worth £191,000. The average amount of ground rent was £65 billed per annum. The lease ran out in 2084. Taking into account 58 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 not including fees.