When it comes to residential leasehold premises in Edenthorpe, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than 80 years left. Residents in Edenthorpe with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. Once the lease term has below 80 years left, under the relevant statute the landlord is entitled to calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Edenthorpe with in excess of 100 years remaining 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 premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
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.
Alfie was the the leasehold owner of a conversion apartment in Edenthorpe being sold with a lease of just over sixty years left. Alfie on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.
Last May we were contacted by Ms P Alexander , who was assigned a lease of a one bedroom apartment in Edenthorpe in September 2011. The question was if we could approximate the price would be to extend the lease by ninety years. Similar properties in Edenthorpe with a long lease were worth £295,000. The average amount of ground rent was £45 billed per annum. The lease elapsed in 2100. Having 74 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Mr K Mercier bought a first floor apartment in Edenthorpe in February 2004. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparative properties in Edenthorpe with an extended lease were valued about £243,000. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish on 27 February 2089. Taking into account 63 years unexpired we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of costs.