Edgware leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Edgware will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain situations you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Edgware with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Edgware,the lease extension solicitors 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 Edgware valuers.
Following unsuccessful discussions with the freeholder of her purpose-built apartment in Edgware, Jennifer started the lease extension process just as the lease was approaching the crucial 80-year threshold. The lease extension completed in April 2011. The landlord’s costs were kept to an absolute minimum.
In 2013 we were approached by Mr and Mrs. U Ricardo who, having bought a one bedroom flat in Edgware in September 1996. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical premises in Edgware with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired on 9 July 2094. Considering the 69 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The remaining number of years on the lease was 71.73 years.