Edgware leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Edgware residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Edgware you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a freeholder in Edgware,the lease extension experts 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.
Subsequent to lengthy negotiations with the landlord of her garden apartment in Edgware, Maisie commenced the lease extension process as the 80 year threshold was quickly coming. The transaction completed in September 2007. The freeholder’s fees were kept to an absolute minimum.
Dr O Richardson acquired a one bedroom apartment in Edgware in February 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Edgware with a long lease were valued around £208,200. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out on 12 January 2086. Taking into account 61 years left we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.
An example of a Lease Extension decision for a Edgware flat 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 unexpired residue of the current lease was 71.73 years.