When it comes to long leasehold premises in Edmonton, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Leasehold owners in Edmonton with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has under 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Edmonton with in excess of one hundred years left 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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. |
| 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. |
| 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. |
The lawyers that we work with undertake Edmonton 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.
Ali owned a studio apartment in Edmonton on the market with a lease of just over sixty years outstanding. Ali informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Ali to invoke his statutory right. Ali obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Ms Imogen André moved into a one bedroom flat in Edmonton in November 2002. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Edmonton with a long lease were worth £183,600. The average ground rent payable was £65 billed every twelve months. The lease end date was on 24 March 2083. Having 57 years remaining we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
An example of a Vesting Order and Purchase of freehold case for a Edmonton property is Ground Floor Flat 4A Baronet Road in February 2010. Following a vesting order by Edmonton County Court on 23rd December 2008 (case number 8ED064) the Tribunal decided that the price that the Applicant for the freehold interest should pay is £8,689.00 This case was in relation to 2 flats. The unexpired residue of the current lease was 80.01 years.