Long Eaton leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher amount will be due. Leasehold owners in Long Eaton will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Long Eaton with in excess of 100 years outstanding 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Long Eaton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Long Eaton valuers.
After unsuccessful negotiations with the landlord of her two bedroom flat in Long Eaton, Caitlin initiated the lease extension process as the 80 year threshold was quickly nearing. The transaction was concluded in October 2011. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. J Edwards completed a newly refurbished flat in Long Eaton in June 1996. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable properties in Long Eaton with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ended on 25 May 2102. Taking into account 76 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
Last Autumn we were approach by Mr and Mrs. G Rivera , who took over the lease of a first floor apartment in Long Eaton in May 2004. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Long Eaton with 100 year plus lease were in the region of £257,800. The average ground rent payable was £65 collected quarterly. The lease expiry date was in 2091. Considering the 65 years left we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including costs.