Edingale leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease dips below eighty years - otherwise a higher amount will be due. Flat owners in Edingale will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain situations you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Edingale with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Using our service gives you enhanced control over the value of your Edingale leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Felix, came dangerously near to the 80-year threshold with the lease on his two bedroom apartment in Edingale. In buying his home 19 years previously, the length of the lease was of little concern. As luck would have it, he became aware that he would imminently be paying way over the odds for Extending the lease. Felix was able to extend his lease just under the wire in September. Felix and the freeholder subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the amount would have increased by at least £950.
Last Spring we were phoned by Dr Isabelle Allen , who completed a recently refurbished apartment in Edingale in March 2012. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar homes in Edingale with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 collected yearly. The lease terminated in 2101. Given that there were 76 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
Last March we were contacted by Mr D André , who owned a newly refurbished apartment in Edingale in May 1995. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar residencies in Edingale with an extended lease were worth £176,200. The average ground rent payable was £65 collected annually. The lease expiry date was on 15 April 2081. Considering the 56 years unexpired we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.