As the length of the unexpired term of a Edingale residential lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner than later. The majority of flat owners in Edingale will qualify for this right; that being said a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent 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 many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Edingale can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
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 Edingale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Zachary was the the leasehold owner of a conversion apartment in Edingale on the market with a lease of a little over 59 years outstanding. Zachary on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Zachary to invoke his statutory right. Zachary procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2012 we were e-mailed by Mr and Mrs. U Davies who, having acquired a ground floor apartment in Edingale in March 2003. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar premises in Edingale with a long lease were valued about £250,000. The average amount of ground rent was £50 billed annually. The lease lapsed on 24 September 2095. Given that there were 69 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last month we were contacted by Ms U Baker , who acquired a studio apartment in Edingale in October 2006. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Edingale with an extended lease were worth £285,000. The average ground rent payable was £55 invoiced monthly. The lease elapsed on 8 August 2106. Given that there were 80 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.