The nearer a domestic lease in Edgware gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Edgware will qualify for this right; that being said a lawyer should be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Edgware with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 conveyancer we work with provide it.
Two years ago Reuben, started to get close to the 80-year threshold with the lease on his basement apartment in Edgware. In buying his property 19 years previously, the lease term was of minimal bearing. by good luck, he became aware that he needed to take action soon on Extending the lease. Reuben was able to extend his lease at the eleventh hour last June. Reuben and the landlord eventually agreed on the final figure of £5,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £875.
In 2013 we were e-mailed by Dr Kirsty Ward who, having acquired a first floor flat in Edgware in October 2004. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Edgware with an extended lease were valued about £166,400. The average ground rent payable was £60 collected yearly. The lease end date was in 2079. Given that there were 54 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus professional charges.
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 affected 1 flat. The number of years remaining on the existing lease(s) was 71.73 years.