Edgware leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Edgware tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Edgware you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Edgware with more than one hundred years remaining 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Lease extensions in Edgware can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 dealing with Edgware lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Nathaniel, came dangerously near to the eighty-year mark with the lease on his two bedroom apartment in Edgware. In buying his property two decades ago, the unexpired term was of no significance. Thankfully, he recognised he needed to take action soon on Extending the lease. Nathaniel was able to extend his lease just in the nick of time in September. Nathaniel and the freeholder via the management company subsequently agreed on sum of £5,000 . If the lease had slipped below 80 years, the amount would have gone up by at least £1,125.
In 2009 we were called by Mr Riley Pérez who, having moved into a ground floor apartment in Edgware in January 2009. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical flats in Edgware with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 billed yearly. The lease expired in 2092. Taking into account 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.
An example of a Lease Extension matter before the tribunal for a Edgware premises 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.