Eye leases on residential properties are gradually losing 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. The majority of owners of residential leasehold property in Eye enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Eye you should check if your lease has between 70 and ninety years left. There are good reasons why a Eye flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Retaining our service gives you enhanced control over the value of your Eye leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her purpose-built flat in Eye, Niamh initiated the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The transaction was finalised in November 2012. The landlord’s charges were restricted to less than 550 GBP.
Mr and Mrs. Y Rodríguez bought a first floor apartment in Eye in March 2006. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical homes in Eye with 100 year plus lease were valued about £290,000. The average amount of ground rent was £60 collected annually. The lease elapsed on 19 April 2105. Having 80 years left we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.
Mr and Mrs. F Baker acquired a first floor flat in Eye in June 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Eye with a long lease were valued around £200,800. The mid-range ground rent payable was £65 collected per annum. The lease ran out in 2085. Taking into account 60 years outstanding we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including professional charges.