Edge Hill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Edge Hill residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Edge Hill you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Edge Hill,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Edge Hill valuers.
Following protracted negotiations with the freeholder of her ground floor flat in Edge Hill, Caitlin initiated the lease extension process as the 80 year deadline was swiftly nearing. The transaction was finalised in January 2013. The landlord’s fees were negotiated to slightly above 650 GBP.
Mr George Dupont moved into a first floor flat in Edge Hill in May 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar residencies in Edge Hill with 100 year plus lease were worth £218,000. The average amount of ground rent was £45 collected quarterly. The lease terminated on 23 April 2089. Taking into account 63 years remaining we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 not including expenses.
In 2010 we were called by Ms J Pérez who, having moved into a one bedroom apartment in Edge Hill in May 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Similar homes in Edge Hill with an extended lease were in the region of £265,000. The mid-range ground rent payable was £55 collected per annum. The lease ran out in 2100. Given that there were 74 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.