It’s a harsh truth that a Edenthorpe residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Edenthorpe property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Edenthorpe will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Edenthorpe with more than 100 years left 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Using our service will provide you increased control over the value of your Edenthorpe leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the freeholder of her leasehold flat in Edenthorpe, Kelsey commenced the lease extension process just as her lease was nearing the crucial eighty-year deadline. The lease extension was concluded in July 2008. The landlord’s fees were kept to an absolute minimum.
Dr P Walker was assigned a lease of a ground floor apartment in Edenthorpe in September 2000. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative properties in Edenthorpe with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 billed annually. The lease lapsed on 17 February 2098. Taking into account 72 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.
In 2012 we were called by Dr M Bennett who, having completed a basement apartment in Edenthorpe in July 2011. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative properties in Edenthorpe with an extended lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease lapsed in 2087. Given that there were 61 years left we calculated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 not including expenses.