The only way is down when it comes to Edgware lease terms. Edgware properties that have a residual term less than than eighty years will reduce in value at a rapid rate, and the cost to extend your lease will increase.
Leasehold premises in Edgware with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | 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. |
Engaging our service gives you enhanced control over the value of your Edgware leasehold, as your property will be more valuable and marketable 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.
Half a year ago Austin, came seriously near to the 80-year mark with the lease on his purpose- built flat in Edgware. In buying his home twenty years ago, the lease term was of little relevance. Thankfully, it dawned on him that he would soon be paying way over the odds for a lease extension. Austin extended the lease at the eleventh hour last January. Austin and the landlord subsequently settled on a premium of £5,000 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £950.
Dr V Pérez took over the lease of a one bedroom apartment in Edgware in May 2002. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparative flats in Edgware with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 collected per annum. The lease expired in 2095. Considering the 70 years remaining we estimated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 not including costs.
An example of a Lease Extension decision for a Edgware property 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.