When it comes to domestic leasehold premises in Common Edge, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are less than 80 years remaining. Anyone in Common Edge with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below 80 years left, under the current Act the landlord can calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Common Edge with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Common Edge leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her first floor apartment in Common Edge, Bethan initiated the lease extension process just as the lease was approaching the all-important 80-year mark. The lease extension was finalised in January 2008. The landlord’s fees were negotiated to less than 600 GBP.
Dr Nathan Garcia bought a purpose-built flat in Common Edge in February 2012. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Common Edge with a long lease were worth £275,000. The mid-range amount of ground rent was £55 billed monthly. The lease lapsed in 2102. Given that there were 77 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
Last Christmas we were e-mailed by Dr Joseph Walker , who took over the lease of a basement apartment in Common Edge in November 1997. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparable flats in Common Edge with an extended lease were valued about £183,600. The mid-range amount of ground rent was £65 invoiced per annum. The lease elapsed on 22 March 2082. Taking into account 57 years remaining we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including fees.