Chances are that where you own a flat in Eynsham you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Engaging our service will provide you enhanced control over the value of your Eynsham leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted negotiations with the landlord of her ground floor flat in Eynsham, Millie initiated the lease extension process as the eighty year deadline was rapidly nearing. The legal work was finalised in September 2012. The landlord’s charges were negotiated to slightly above 450 GBP.
In 2009 we were called by Dr E Brown who, having completed a one bedroom flat in Eynsham in March 1997. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparative residencies in Eynsham with 100 year plus lease were valued around £181,600. The average amount of ground rent was £55 invoiced per annum. The lease finished on 5 February 2077. Given that there were 52 years outstanding we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including professional charges.
In 2013 we were approached by Mr and Mrs. H Adams who, having was assigned a lease of a garden apartment in Eynsham in February 2003. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Eynsham with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease ended in 2097. Taking into account 72 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.