As the the remaining lease term of a Edmonton residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Most flat owners in Edmonton will qualify for this right; however a conveyancer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
The lawyers that we work with handle Edmonton 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 conveyancing solicitor we work with provide it.
Half a year ago Cameron, came perilously close to the 80-year mark with the lease on his leasehold apartment in Edmonton. In buying his home two decades ago, the lease term was of no interest. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. Cameron extended the lease at the eleventh hour last August. Cameron and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the premium would have increased by a minimum £1,000.
Mr Aaron Nelson bought a one bedroom apartment in Edmonton in August 2012. The question was if we could approximate the price could be for a 90 year extension to my lease. Similar properties in Edmonton with 100 year plus lease were worth £245,000. The mid-range amount of ground rent was £45 collected monthly. The lease ended in 2093. Considering the 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
An example of a Vesting Order and Purchase of freehold case for a Edmonton property is Ground Floor Flat 4A Baronet Road in February 2010. Following a vesting order by Edmonton County Court on 23rd December 2008 (case number 8ED064) the Tribunal decided that the price that the Applicant for the freehold interest should pay is £8,689.00 This case was in relation to 2 flats. The number of years remaining on the existing lease(s) was 80.01 years.