Upper Edmonton leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about 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 drops below eighty years - otherwise a higher amount will be due. Flat owners in Upper Edmonton will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Upper Edmonton with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Upper Edmonton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Upper Edmonton valuers.
Trailing lengthy negotiations with the freeholder of her first floor apartment in Upper Edmonton, Emily started the lease extension process as the 80 year threshold was swiftly nearing. The transaction was concluded in October 2012. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were contacted by Dr M Mitchell , who purchased a one bedroom apartment in Upper Edmonton in September 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Upper Edmonton with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease end date was on 2 October 2094. Taking into account 68 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2014 we were called by Mr and Mrs. V González who, having completed a studio flat in Upper Edmonton in June 2005. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable premises in Upper Edmonton with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease finished in 2105. Given that there were 79 years unexpired we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.