The only way is down when it comes to Euston lease terms. Euston flats that have a lease term fewer than eighty years will de-escalate in value at a rapid rate, and the cost of extending your lease will go up.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Euston can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 in-depth market knowledge procuring Euston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy was the the leasehold proprietor of a studio apartment in Euston being marketed with a lease of a few days over 59 years unexpired. Teddy on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Teddy to exercise his statutory right. Teddy procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Mrs Georgina González bought a newly refurbished apartment in Euston in January 1996. The question was if we could approximate the premium could be for a ninety year lease extension. Comparative properties in Euston with an extended lease were in the region of £280,000. The average ground rent payable was £55 invoiced quarterly. The lease ended in 2104. Considering the 78 years left we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.
Last June we were called by Mr Noah Bailey , who acquired a one bedroom flat in Euston in May 2001. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Identical flats in Euston with 100 year plus lease were worth £191,000. The average ground rent payable was £65 collected monthly. The lease termination date was on 16 March 2084. Considering the 58 years remaining we calculated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus professional charges.