Edingale leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Edingale will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Edingale leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Omar was the the leasehold owner of a studio apartment in Edingale being sold with a lease of just over 61 years unexpired. Omar on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Omar to invoke his statutory right. Omar procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
In 2014 we were called by Ms Gemma Rose who, having owned a purpose-built flat in Edingale in February 1999. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable premises in Edingale with a long lease were worth £168,800. The average ground rent payable was £60 collected monthly. The lease expiry date was on 7 July 2081. Given that there were 55 years remaining we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.
Mr and Mrs. P Garcia acquired a basement apartment in Edingale in October 1998. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Edingale with an extended lease were valued about £235,200. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed in 2092. Considering the 66 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.