The closer a domestic lease in Euston nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Euston will meet the qualifying criteria; that being said a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you increased control over the value of your Euston leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her purpose-built flat in Euston, Ellie started the lease extension process just as her lease was approaching the critical 80-year deadline. The transaction was finalised in June 2011. The landlord’s fees were restricted to approximately four hundred GBP.
Last Summer we were approach by Mr and Mrs. S Young , who bought a garden apartment in Euston in March 1995. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Euston with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 28 April 2097. Having 71 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
Mr and Mrs. D Williams bought a ground floor apartment in Euston in July 1997. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar flats in Euston with a long lease were worth £254,200. The mid-range amount of ground rent was £60 collected quarterly. The lease expired in 2077. Taking into account 51 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including professional charges.