Edingale leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Edingale will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Edingale with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Edingale leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Ryan, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Edingale. Having purchased his flat two decades ago, the length of the lease was of minimal bearing. Thankfully, he recognised he would soon be paying way over the odds for a lease extension. Ryan was able to extend his lease just ahead of time last August. Ryan and the freeholder eventually settled on a premium of £6,000 . If the lease had dipped below eighty years, the premium would have become more costly by at least £1,050.
In 2012 we were called by Dr F Reed who, having purchased a one bedroom apartment in Edingale in September 2008. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Edingale with an extended lease were valued about £237,600. The average ground rent payable was £45 collected every twelve months. The lease end date was in 2093. Taking into account 67 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of expenses.
Dr Rosie Ricardo completed a one bedroom flat in Edingale in August 1996. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Identical flats in Edingale with a long lease were in the region of £280,000. The average ground rent payable was £55 invoiced yearly. The lease elapsed on 24 January 2104. Having 78 years outstanding we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.