Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Eynsham. Clearly, the length of lease remaining shortens over time. This is often ignored and only becomes a problem when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Eynsham have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give due deliberation before putting off your Eynsham lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Eynsham 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.
Last October Hugo, started to get close to the 80-year mark with the lease on his basement flat in Eynsham. Having bought his home 18 years previously, the length of the lease was of no importance. Fortunately, he noticed he needed to take action soon on a lease extension. Hugo arranged for a lease extension just in the nick of time in June. Hugo and the landlord who owned the flat above in the end agreed on sum of £5,500 . If he failed to meet the deadline, the figure would have become more exhorbitant by at least £1,100.
Last Summer we were approach by Mr and Mrs. K Roux , who completed a first floor apartment in Eynsham in October 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical flats in Eynsham with a long lease were in the region of £250,400. The average ground rent payable was £65 collected per annum. The lease came to a finish on 5 April 2089. Given that there were 64 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.
Last Spring we were called by Mrs H Simon , who moved into a one bedroom apartment in Eynsham in November 2001. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar properties in Eynsham with 100 year plus lease were in the region of £184,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expired in 2078. Considering the 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.