As the length of the unexpired term of a Euxton domestic lease diminished so does its value and therefore the value of your property. If the residual term has, more than 99 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Euxton will meet the qualifying criteria; that being said a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Euxton with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Euxton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Two years ago Jason, started to get close to the eighty-year mark with the lease on his leasehold apartment in Euxton. In buying his flat 19 years previously, the lease term was of no concern. Fortunately, it dawned on him that he would soon be paying way over the odds for a lease extension. Jason arranged for a lease extension just ahead of time in June. Jason and the freeholder via the managing agents eventually agreed on sum of £5,500 . If he not met the deadline, the premium would have become more exhorbitant by at least £975.
Dr Toby Hall moved into a one bedroom flat in Euxton in October 2012. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative residencies in Euxton with an extended lease were valued about £198,800. The mid-range ground rent payable was £55 collected annually. The lease finished in 2080. Considering the 55 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus expenses.
Last Winter we were e-mailed by Dr Isabella Green , who moved into a one bedroom apartment in Euxton in November 2002. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparative homes in Euxton with an extended lease were valued about £300,000. The average amount of ground rent was £50 collected monthly. The lease finished on 8 September 2100. Given that there were 75 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.