There is no doubt about it a leasehold property in Eden Park is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Eden Park will qualify for this right; nevertheless a conveyancer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Eden Park leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Sam, started to get near to the eighty-year threshold with the lease on his first floor flat in Eden Park. Having bought his property two decades ago, the lease term was of little interest. by good luck, he noticed he needed to take steps soon on a lease extension. Sam extended the lease just in the nick of time last August. Sam and the landlord who owned the flat above eventually settled on sum of £5,500 . If he not met the deadline, the figure would have become more costly by a minimum £900.
In 2013 we were called by Dr E Ricardo who, having moved into a studio apartment in Eden Park in November 2012. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Identical properties in Eden Park with an extended lease were worth £265,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 13 October 2099. Taking into account 73 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 2 flats. The unexpired residue of the current lease was 76.75 and 88.83.