There is no doubt about it a leasehold flat or house in Eynsham is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 99 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. The majority of flat owners in Eynsham will qualify for this right; that being said a conveyancing solicitor will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Eynsham with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Lease extensions in Eynsham can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Eynsham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the landlord of her purpose-built apartment in Eynsham, Erin initiated the lease extension process just as the lease was approaching the critical 80-year threshold. The transaction was concluded in October 2013. The freeholder’s charges were negotiated to about 600 GBP.
Last Christmas we were called by Dr O Sharif , who was assigned a lease of a one bedroom apartment in Eynsham in June 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Eynsham with 100 year plus lease were valued around £166,800. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed on 5 February 2076. Given that there were 50 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of legals.
Last Winter we were contacted by Ms Phoebe Laurent , who completed a basement apartment in Eynsham in January 2011. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical properties in Eynsham with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced monthly. The lease lapsed in 2096. Having 70 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.