The market value of Edgware leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is less than 80 years
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 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 |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with procure Edgware 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 lawyer we work with provide it.
Joseph was the the leasehold proprietor of a conversion flat in Edgware being marketed with a lease of just over 59 years remaining. Joseph informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Joseph to invoke his statutory right. Joseph procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last month we were contacted by Mr and Mrs. N Green , who purchased a newly refurbished apartment in Edgware in April 2009. The question was if we could estimate the price would be to extend the lease by a further 90 years. Comparable properties in Edgware with a long lease were valued around £255,000. The mid-range amount of ground rent was £50 billed yearly. The lease ran out in 2097. Having 71 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
An example of a Lease Extension case for a Edgware residence 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 was 71.73 years.