Eden Park leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher amount will be due. Flat owners in Eden Park will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not qualify. There are also strict deadlines and formalities to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Eden Park with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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 lawyer we work with provide it.
Leo was the the leasehold proprietor of a 2 bedroom flat in Eden Park on the market with a lease of a few days over 61 years unexpired. Leo on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Leo to invoke his statutory right. Leo procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
In 2010 we were contacted by Ms G Lefèvre who, having bought a one bedroom flat in Eden Park in July 2003. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative flats in Eden Park with 100 year plus lease were valued about £173,800. The average amount of ground rent was £65 collected quarterly. The lease end date was in 2080. Taking into account 55 years remaining we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Eden Park premises 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 remaining number of years on the lease was 76.75 and 88.83.