With a residential leasehold property in Edgware, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Leasehold owners in Edgware with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has below eighty years outstanding, under the current Act the freeholder can calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Edgware with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Edgware can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Edgware lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Luca, started to get close to the 80-year mark with the lease on his one bedroom flat in Edgware. In buying his flat 19 years ago, the lease term was of little interest. As luck would have it, he recognised he needed to take action soon on Extending the lease. Luca extended the lease at the eleventh hour in September. Luca and the freeholder via the managing agents ultimately settled on a premium of £5,500 . If the lease had dropped lower than 80 years, the price would have increased by a minimum £1,125.
In 2012 we were phoned by Ms Abigail Baker who, having bought a ground floor flat in Edgware in April 2000. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Edgware with 100 year plus lease were valued about £264,000. The average amount of ground rent was £60 invoiced quarterly. The lease finished in 2078. Having 53 years unexpired we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 plus fees.
An example of a Lease Extension decision 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 unexpired term as at the valuation date was 71.73 years.