Unfortunately that a Edenthorpe residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Edenthorpe property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining drops under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Edenthorpe will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers 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 conveyancer we work with provide it.
Elijah was the the leasehold proprietor of a high value flat in Edenthorpe being sold with a lease of a little over sixty years outstanding. Elijah informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Elijah to invoke his statutory right. Elijah procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2010 we were contacted by Mr and Mrs. D García who, having acquired a one bedroom flat in Edenthorpe in October 2010. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable residencies in Edenthorpe with an extended lease were in the region of £240,600. The mid-range ground rent payable was £60 collected per annum. The lease lapsed in 2087. Having 62 years left we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus fees.
In 2009 we were contacted by Mr Finn Reed who, having purchased a purpose-built flat in Edenthorpe in August 2006. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable residencies in Edenthorpe with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 billed yearly. The lease came to a finish in 2076. Given that there were 51 years left we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.