Euston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Euston residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Euston you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Santander |
Irrespective of whether you are a tenant or a landlord in Euston,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Euston valuers.
Trailing lengthy negotiations with the freeholder of her leasehold flat in Euston, Natasha initiated the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension completed in February 2005. The landlord’s costs were negotiated to approximately 600 GBP.
Last Christmas we were contacted by Dr Hunter Clark , who acquired a one bedroom apartment in Euston in February 2010. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical properties in Euston with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 invoiced monthly. The lease ended in 2092. Considering the 66 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.
In 2010 we were approached by Mr and Mrs. R Martinez who, having was assigned a lease of a one bedroom apartment in Euston in June 2003. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Euston with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease lapsed in 2103. Taking into account 77 years outstanding we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.