When it comes to residential leasehold premises in Edge Hill, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years left. Leasehold owners in Edge Hill with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once a lease has fewer than 80 years remaining, under the current Act the landlord can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Edge Hill with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Edge Hill 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 conveyancing solicitor we work with provide it.
Trailing lengthy negotiations with the landlord of her two bedroom flat in Edge Hill, Katie started the lease extension process just as her lease was nearing the all-important 80-year mark. The legal work was concluded in June 2010. The landlord’s costs were kept to an absolute minimum.
Last April we were approach by Mr and Mrs. O Walker , who was assigned a lease of a garden flat in Edge Hill in February 1999. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable homes in Edge Hill with an extended lease were valued about £176,200. The average ground rent payable was £65 billed monthly. The lease elapsed on 3 June 2082. Given that there were 56 years as a residual term we calculated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of professional charges.
In 2011 we were called by Mr and Mrs. N Stewart who, having moved into a newly refurbished flat in Edge Hill in September 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Similar properties in Edge Hill with 100 year plus lease were valued about £242,600. The average ground rent payable was £45 collected yearly. The lease termination date was on 24 August 2093. Taking into account 67 years remaining we approximated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 not including professional charges.