The closer a residential lease in Eden Park nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. The majority of flat owners in Eden Park will meet the qualifying criteria; that being said a conveyancer should be able to confirm if you are eligible to extend your lease. 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.
Leasehold properties in Eden Park with more than one hundred years remaining 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Eden Park,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Eden Park valuers.
In recent months Sam, came precariously near to the eighty-year threshold with the lease on his ground floor flat in Eden Park. Having purchased his flat two decades ago, the unexpired term was of little interest. Fortunately, he noticed he would imminently be paying way over the odds for a lease extension. Sam extended the lease at the eleventh hour in January. Sam and the landlord ultimately settled on sum of £5,000 . If he had missed the deadline, the price would have become more exhorbitant by at least £875.
In 2013 we were called by Mr and Mrs. G Lefèvre who, having moved into a recently refurbished apartment in Eden Park in February 2006. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical properties in Eden Park with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £60 billed yearly. The lease expired on 27 April 2106. Given that there were 80 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Eden Park residence 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 number of years remaining on the existing lease(s) was 76.75 and 88.83.