When it comes to long leasehold property in Edwinstowe, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years remaining. Residents in Edwinstowe with a lease nearing 81 years left should seriously consider extending it without delay. Once a lease has below eighty years outstanding, under the current legislation the landlord is entitled to calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Edwinstowe with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
The conveyancers that we work with procure Edwinstowe 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.
Mason owned a high value flat in Edwinstowe on the market with a lease of just over 59 years remaining. Mason on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Mason to invoke his statutory right. Mason obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last year we were contacted by Mr R Moreau , who moved into a first floor apartment in Edwinstowe in March 2007. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar flats in Edwinstowe with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease expired on 10 February 2104. Given that there were 78 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.
Dr J Richardson owned a purpose-built flat in Edwinstowe in May 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar homes in Edwinstowe with a long lease were worth £267,600. The mid-range amount of ground rent was £65 collected yearly. The lease lapsed on 19 October 2093. Given that there were 67 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 not including expenses.