The closer a residential lease in Euston gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner than later. Most flat owners in Euston will qualify for this right; however a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Euston can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.
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 Euston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Jackson, started to get near to the 80-year mark with the lease on his ground floor flat in Euston. In buying his property two decades ago, the unexpired term was of minimal relevance. As luck would have it, he became aware that he would soon be paying an escalated premium for a lease extension. Jackson was able to extend his lease just in the nick of time in January. Jackson and the landlord who owned the flat above in the end settled on sum of £5,500 . If the lease had gone to less than eighty years, the premium would have become more exhorbitant by a minimum £1,150.
Last March we were e-mailed by Mr and Mrs. H Smith , who moved into a first floor apartment in Euston in June 2004. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical premises in Euston with a long lease were worth £193,400. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed on 21 March 2085. Taking into account 59 years remaining we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus costs.
Last Summer we were phoned by Mr and Mrs. O Anderson , who completed a studio apartment in Euston in January 1999. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Euston with a long lease were valued around £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease elapsed on 28 April 2096. Considering the 70 years remaining we calculated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 plus legals.