As the length of the unexpired term of a Edgware domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over one hundred years remaining then this decrease may be negligible however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Edgware will qualify for this right; nevertheless a conveyancer should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 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 a wealth of experience 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 Christmas Rory, came perilously close to the 80-year threshold with the lease on his first floor apartment in Edgware. In buying his property twenty years previously, the length of the lease was of no bearing. Fortunately, he realised he needed to take action soon on Extending the lease. Rory extended the lease at the eleventh hour last March. Rory and the freeholder subsequently agreed on sum of £5,500 . If the lease had descended to less than 80 years, the figure would have gone up by at least £1,075.
In 2012 we were phoned by Mr and Mrs. T Petit who, having completed a recently refurbished apartment in Edgware in November 2010. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative flats in Edgware with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease end date was in 2088. Given that there were 62 years unexpired we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of costs.
An example of a Lease Extension decision 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 was in relation to 1 flat. The unexpired residue of the current lease was 71.73 years.