The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Edgware have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Please think carefully before delaying your Edgware lease extension. Putting off that expense today simply increases the premium you will eventually be required to pay to extend the lease.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service will provide you enhanced control over the value of your Edgware leasehold, as your property will be more valuable and saleable in respect 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.
Seth was the the leasehold owner of a studio flat in Edgware on the market with a lease of fraction over 59 years unexpired. Seth on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Seth to invoke his statutory right. Seth obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Mr and Mrs. L Bernard purchased a first floor apartment in Edgware in November 2001. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparable flats in Edgware with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease finished in 2093. Considering the 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
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 was in relation to 1 flat. The unexpired term as at the valuation date was 71.73 years.