It’s a harsh truth that a Edwinstowe residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Edwinstowe property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Most leasehold owners in Edwinstowe will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Edwinstowe can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Edwinstowe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Daniel, started to get near to the 80-year mark with the lease on his one bedroom flat in Edwinstowe. In buying his flat twenty years previously, the length of the lease was of no bearing. Thankfully, he became aware that he needed to take steps soon on a lease extension. Daniel arranged for a lease extension at the eleventh hour in June. Daniel and the freeholder via the management company ultimately settled on a premium of £5,500 . If he had missed the deadline, the amount would have escalated by at least £1,050.
In 2011 we were approached by Mr and Mrs. E Turner who, having completed a garden flat in Edwinstowe in September 2004. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Edwinstowe with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 billed monthly. The lease finished on 26 April 2090. Taking into account 64 years unexpired we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 plus professional charges.
In 2014 we were e-mailed by Mr Noah Díaz who, having took over the lease of a garden apartment in Edwinstowe in August 2007. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparable premises in Edwinstowe with an extended lease were in the region of £189,000. The average amount of ground rent was £55 invoiced quarterly. The lease ran out in 2079. Given that there were 53 years remaining we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.