The re-sale value of a leasehold property in Edingale depends on how long the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be concluded ahead of the 80 year threshold. Current legislation entitles Edingale qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Edingale with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 years plus the term of the mortgage 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Edingale lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Nathan, started to get near to the eighty-year mark with the lease on his basement apartment in Edingale. In buying his home two decades ago, the lease term was of little significance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Nathan arranged for a lease extension at the eleventh hour last August. Nathan and the landlord who owned the flat above subsequently settled on sum of £5,500 . If the lease had fallen to less than 80 years, the sum would have escalated by a minimum £1,025.
In 2011 we were contacted by Mr and Mrs. O Jones who, having was assigned a lease of a first floor apartment in Edingale in July 2011. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar flats in Edingale with 100 year plus lease were valued about £265,000. The average ground rent payable was £50 billed monthly. The lease ran out in 2100. Taking into account 74 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Ms F Carter owned a studio flat in Edingale in November 2000. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Edingale with an extended lease were valued about £166,400. The average ground rent payable was £60 collected every twelve months. The lease ran out on 21 April 2080. Taking into account 54 years left we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including professional charges.