It’s a harsh certainty that a Eynsham residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Eynsham property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. The majority of flat owners in Eynsham will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Eynsham leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian was the the leasehold proprietor of a studio apartment in Eynsham on the market with a lease of just over fifty eight years remaining. Sebastian informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were e-mailed by Mr and Mrs. O Taylor , who owned a one bedroom apartment in Eynsham in May 1998. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative homes in Eynsham with an extended lease were in the region of £267,600. The mid-range ground rent payable was £65 billed annually. The lease terminated on 18 July 2093. Taking into account 67 years left we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of costs.
In 2011 we were approached by Mr K Wood who, having completed a garden apartment in Eynsham in November 2002. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar premises in Eynsham with a long lease were valued around £201,200. The mid-range amount of ground rent was £55 collected monthly. The lease ran out on 21 September 2082. Having 56 years unexpired we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.