Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Edenbridge. Inevitably, the term of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the residence has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Edenbridge have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful deliberation before putting off your Edenbridge lease extension. Holding off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold residencies in Edenbridge with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Edenbridge leasehold, as your property will be more valuable and saleable in relation to the 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.
After unsuccessful negotiations with the landlord of her one bedroom flat in Edenbridge, Courtney commenced the lease extension process as the eighty year threshold was quickly approaching. The lease extension was concluded in July 2013. The landlord’s charges were negotiated to slightly above 650 GBP.
Last Christmas we were e-mailed by Mrs Natalie Lee , who bought a basement flat in Edenbridge in March 2007. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Identical premises in Edenbridge with an extended lease were in the region of £243,000. The average amount of ground rent was £65 collected every twelve months. The lease finished in 2088. Considering the 63 years remaining we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including legals.
Mr Jackson Bell bought a purpose-built flat in Edenbridge in July 2005. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Identical premises in Edenbridge with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 billed annually. The lease ran out in 2077. Given that there were 52 years left we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.