Unfortunately that a Edgwarebury residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Edgwarebury property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be payable. Most leasehold owners in Edgwarebury will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Edgwarebury,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Edgwarebury valuers.
In 2014 Jason, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Edgwarebury. In buying his home two decades ago, the length of the lease was of no relevance. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Jason was able to extend his lease just under the wire last April. Jason and the freeholder ultimately settled on the final figure of £5,000 . If the lease had slipped lower than 80 years, the amount would have increased by at least £1,150.
In 2013 we were approached by Mr and Mrs. G Brown who, having was assigned a lease of a one bedroom apartment in Edgwarebury in November 2000. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative flats in Edgwarebury with 100 year plus lease were valued around £218,400. The mid-range amount of ground rent was £60 collected quarterly. The lease concluded in 2084. Considering the 59 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Edgwarebury premises 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 was in relation to 1 flat.