Edith Weston leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Edith Weston enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Edith Weston you should investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Edith Weston with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Edith Weston can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
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 a wealth of experience dealing with Edith Weston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter owned a 2 bedroom apartment in Edith Weston on the market with a lease of just over 59 years remaining. Dexter informally approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert advice and secured an acceptable resolution informally and sell the property.
Mr and Mrs. I García purchased a one bedroom apartment in Edith Weston in July 1998. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar homes in Edith Weston with a long lease were in the region of £260,000. The average amount of ground rent was £50 collected yearly. The lease ended on 18 September 2097. Considering the 72 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2011 we were phoned by Mr and Mrs. W González who, having completed a one bedroom flat in Edith Weston in August 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical residencies in Edith Weston with 100 year plus lease were valued about £256,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease ran out on 11 June 2077. Taking into account 52 years left we estimated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus fees.