When it comes to long leasehold premises in Eden Park, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years remaining. Leasehold owners in Eden Park with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has below 80 years remaining, under the relevant Act the freeholder can calculate and demand a larger amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Eden Park can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Eden Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ollie owned a studio apartment in Eden Park being sold with a lease of just over 72 years remaining. Ollie on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ollie to invoke his statutory right. Ollie procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2010 we were contacted by Mr and Mrs. N Simon who, having bought a recently refurbished apartment in Eden Park in March 2005. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Comparable properties in Eden Park with an extended lease were worth £218,000. The average ground rent payable was £45 invoiced yearly. The lease expired on 12 February 2087. Having 63 years remaining we calculated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including costs.
An example of a Freehold Enfranchisement case for a Eden Park property 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.