Eden Park leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Eden Park enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Eden Park you should check if your lease has between 70 and ninety years left. There are good reasons why a Eden Park leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is effected without delay
Leasehold premises in Eden Park with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 handle Eden Park 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.
Following protracted correspondence with the landlord of her studio apartment in Eden Park, Rebecca commenced the lease extension process as the eighty year threshold was rapidly advancing. The lease extension completed in April 2007. The landlord’s charges were kept to an absolute minimum.
In 2011 we were e-mailed by Mr Luke Stewart who, having owned a purpose-built apartment in Eden Park in January 2009. We are asked if we could approximate the price would be for a 90 year lease extension. Identical premises in Eden Park with 100 year plus lease were valued around £191,000. The average ground rent payable was £65 billed yearly. The lease terminated on 11 November 2083. Considering the 58 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Eden Park flat is 26 Manor Road in July 2010. the Tribunal decided that price to be paid for the freehold was £12,420 This case related to 2 flats. The unexpired residue of the current lease was 76.75 and 88.83.