As the the remaining lease term of a Edgware residential lease diminished so does its value and therefore the value of your property. If the lease has, in excess of 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Edgware will qualify for this right; nevertheless a lawyer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 Edgware,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Edgware valuers.
Following unsuccessful negotiations with the freeholder of her two bedroom flat in Edgware, Amber commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was finalised in February 2006. The freeholder’s fees were restricted to a tad over six hundred pounds.
In 2010 we were phoned by Mr and Mrs. P Mitchell who, having was assigned a lease of a garden apartment in Edgware in September 2003. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical flats in Edgware with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 collected yearly. The lease expiry date was in 2084. Given that there were 59 years unexpired we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Edgware flat is Ground Floor Maisonette 17 Milton Road in January 2014. The Tribunal determined the premium payable by the Applicant to the should be £13,299 This case related to 1 flat. The unexpired lease term was 71.73 years.