Edwinstowe leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease falls under eighty years - otherwise a higher amount will be due. Leasehold owners in Edwinstowe will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Edwinstowe with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Edwinstowe leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her basement flat in Edwinstowe, Lauren started the lease extension process as the eighty year deadline was quickly nearing. The legal work was finalised in April 2009. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were approached by Dr Eliot Laurent who, having purchased a garden flat in Edwinstowe in November 1998. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Comparative homes in Edwinstowe with a long lease were worth £260,200. The mid-range amount of ground rent was £65 billed annually. The lease elapsed in 2092. Considering the 66 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including costs.
Last month we were contacted by Mr and Mrs. E Martinez , who completed a one bedroom flat in Edwinstowe in November 1999. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical residencies in Edwinstowe with 100 year plus lease were worth £198,800. The average ground rent payable was £55 collected annually. The lease terminated on 27 September 2081. Given that there were 55 years unexpired we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including professional charges.