Edmonton leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about 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 drops lower than eighty years - otherwise a higher amount will be due. Flat owners in Edmonton will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In some cases you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Edmonton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Edmonton valuers.
Kyle owned a studio flat in Edmonton being sold with a lease of a few days over fifty eight years remaining. Kyle on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert advice and secured an acceptable resolution informally and sell the property.
In 2009 we were contacted by Mr and Mrs. O Stewart who, having owned a newly refurbished flat in Edmonton in June 1997. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable premises in Edmonton with a long lease were valued about £237,600. The mid-range ground rent payable was £45 billed every twelve months. The lease came to a finish on 10 June 2092. Taking into account 67 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus professional charges.
An example of a Vesting Order and Purchase of freehold decision for a Edmonton flat is Ground Floor Flat 4A Baronet Road in February 2010. Following a vesting order by Edmonton County Court on 23rd December 2008 (case number 8ED064) the Tribunal decided that the price that the Applicant for the freehold interest should pay is £8,689.00 This case was in relation to 2 flats. The unexpired term was 80.01 years.