The closer a domestic lease in Edenbridge nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Edenbridge will meet the qualifying criteria; however a lawyer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Edenbridge leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Nathan, started to get close to the 80-year threshold with the lease on his ground floor flat in Edenbridge. In buying his home two decades ago, the unexpired term was of little relevance. As luck would have it, he became aware that he would soon be paying way over the odds for a lease extension. Nathan arranged for a lease extension at the eleventh hour last May. Nathan and the freeholder via the management company in the end agreed on the final figure of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £1,150.
Mrs U Roberts acquired a basement flat in Edenbridge in October 1995. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative homes in Edenbridge with a long lease were valued around £295,000. The average ground rent payable was £50 billed every twelve months. The lease came to a finish on 21 October 2100. Taking into account 75 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
In 2013 we were called by Mr Elijah Bennett who, having completed a one bedroom flat in Edenbridge in March 2003. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable residencies in Edenbridge with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 collected per annum. The lease elapsed on 27 April 2089. Taking into account 64 years outstanding we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including expenses.