When it comes to domestic leasehold premises in Edgwarebury, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years remaining. Anyone in Edgwarebury with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. When a lease has fewer than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Edgwarebury,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 in-depth market knowledge and the close ties they enjoy with Edgwarebury valuers.
Last year Jonathan, came dangerously near to the 80-year threshold with the lease on his two bedroom flat in Edgwarebury. Having bought his property two decades ago, the lease term was of minimal interest. by good luck, he became aware that he would soon be paying an inflated amount for Extending the lease. Jonathan extended the lease at the eleventh hour in September. Jonathan and the freeholder ultimately agreed on sum of £6,000 . If he not met the deadline, the sum would have escalated by at least £1,100.
In 2013 we were contacted by Dr Danielle Murphy who, having took over the lease of a purpose-built apartment in Edgwarebury in November 2006. The question was if we could approximate the price would be for a 90 year extension to my lease. Similar flats in Edgwarebury with 100 year plus lease were worth £191,400. The average ground rent payable was £55 collected per annum. The lease termination date was on 14 March 2079. Having 54 years remaining we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Edgwarebury flat is 42 Churchill Road in March 2013. The Tribunal determined that the price payable in respect of the acquisition of the freehold of the property as required under the terms of the Court Order dated 21 December 2012, is£26,958 This case related to 1 flat.