The closer a residential lease in Edenthorpe nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty 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 main rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Edenthorpe will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Edenthorpe with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| National Westminster Bank | 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 conveyancers that we work with procure Edenthorpe 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.
Tyler was the the leasehold proprietor of a conversion flat in Edenthorpe being marketed with a lease of fraction over 59 years left. Tyler on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Tyler to exercise his statutory right. Tyler obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were approached by Mrs Courtney Patel who, having purchased a purpose-built apartment in Edenthorpe in June 2001. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative flats in Edenthorpe with a long lease were worth £275,000. The average amount of ground rent was £45 billed quarterly. The lease ended on 27 January 2094. Given that there were 69 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Dr Y Hall bought a garden apartment in Edenthorpe in February 2010. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative flats in Edenthorpe with a long lease were worth £216,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease terminated on 15 May 2083. Given that there were 58 years left we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.