Edge Hill leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Edge Hill will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you enhanced control over the value of your Edge Hill leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Luca, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Edge Hill. Having bought his flat two decades ago, the lease term was of no interest. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Luca was able to extend his lease just under the wire in April. Luca and the landlord in the end agreed on sum of £5,500 . If the lease had dropped lower than 80 years, the sum would have become more exhorbitant by at least £1,050.
Dr J Martínez acquired a one bedroom flat in Edge Hill in November 2001. We are asked if we could estimate the premium would be to extend the lease by 90 years. Identical homes in Edge Hill with a long lease were valued around £285,000. The average ground rent payable was £55 collected annually. The lease came to a finish in 2105. Given that there were 80 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
Last Autumn we were contacted by Mr and Mrs. S White , who took over the lease of a garden apartment in Edge Hill in April 2008. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical premises in Edge Hill with 100 year plus lease were valued about £200,800. The average ground rent payable was £65 invoiced per annum. The lease came to a finish on 23 July 2085. Taking into account 60 years remaining we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of legals.