Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Long Eaton. Clearly, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Long Eaton have the legal entitlement to extend the lease for a further 90 years under legislation. Do give due consideration before putting off your Long Eaton lease extension. Holding off that expense now simply increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Long Eaton with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you enhanced control over the value of your Long Eaton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Eliot owned a 2 bedroom flat in Long Eaton on the market with a lease of a few days over fifty eight years remaining. Eliot on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Eliot to exercise his statutory right. Eliot procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
Mr Liam Rogers moved into a first floor apartment in Long Eaton in January 2010. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative homes in Long Eaton with an extended lease were in the region of £210,000. The average ground rent payable was £50 invoiced per annum. The lease lapsed on 9 July 2106. Considering the 80 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
Last Christmas we were phoned by Dr William Michel , who completed a one bedroom apartment in Long Eaton in October 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Similar properties in Long Eaton with an extended lease were worth £275,000. The average amount of ground rent was £45 collected yearly. The lease expiry date was in 2095. Taking into account 69 years outstanding we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.