The market value of Upper Edmonton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than eighty years
Leasehold premises in Upper Edmonton with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Upper Edmonton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Muhammad was the the leasehold proprietor of a high value flat in Upper Edmonton on the market with a lease of a few days over 61 years remaining. Muhammad informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert legal guidance and secured satisfactory deal informally and sell the property.
In 2014 we were contacted by Dr Imogen Walker who, having completed a ground floor apartment in Upper Edmonton in August 2012. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparative flats in Upper Edmonton with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £55 billed yearly. The lease elapsed on 8 July 2102. Given that there were 77 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.
Dr Holly Roux completed a purpose-built apartment in Upper Edmonton in October 2005. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparable homes in Upper Edmonton with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 collected every twelve months. The lease lapsed in 2082. Considering the 57 years unexpired we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.