Edmonton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Edmonton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Edmonton you should see if your lease has between seventy and 90 years remaining. There are good reasons why a Edmonton flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Edmonton with over one hundred years remaining 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 premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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 greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Engaging our service will provide you enhanced control over the value of your Edmonton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her studio flat in Edmonton, Isabel initiated the lease extension process just as her lease was nearing the all-important eighty-year deadline. The transaction was finalised in August 2006. The landlord’s costs were restricted to approximately 600 pounds.
Mr and Mrs. P Díaz was assigned a lease of a newly refurbished apartment in Edmonton in January 1998. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative flats in Edmonton with an extended lease were valued about £250,000. The average amount of ground rent was £50 billed every twelve months. The lease elapsed on 18 May 2095. Given that there were 70 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
An example of a Vesting Order and Purchase of freehold matter before the tribunal for a Edmonton premises 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 related to 2 flats. The unexpired residue of the current lease was 80.01 years.