The value of Common Edge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is below than 80 years
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Common Edge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Alfie was the the leasehold owner of a conversion apartment in Common Edge being sold with a lease of fraction over 61 years left. Alfie on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Alfie to exercise his statutory right. Alfie procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Dr Nathaniel González was assigned a lease of a newly refurbished flat in Common Edge in January 1995. The question was if we could approximate the price would be for a ninety year extension to my lease. Identical properties in Common Edge with a long lease were worth £227,800. The mid-range amount of ground rent was £45 billed annually. The lease concluded on 23 September 2090. Having 65 years unexpired we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.
Mr and Mrs. O Allen owned a recently refurbished flat in Common Edge in February 1999. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable premises in Common Edge with an extended lease were valued about £275,000. The mid-range ground rent payable was £55 billed per annum. The lease concluded on 14 November 2101. Taking into account 76 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.