Edmonton leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Edmonton will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Edmonton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Edmonton valuers.
During the course of the last few months Finn, started to get close to the eighty-year mark with the lease on his studio flat in Edmonton. Having purchased his flat two decades ago, the length of the lease was of little relevance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Finn arranged for a lease extension at the eleventh hour in May. Finn and the freeholder via the management company eventually agreed on sum of £6,000 . If he had missed the deadline, the sum would have gone up by a minimum £975.
Mr and Mrs. K Martínez was assigned a lease of a ground floor flat in Edmonton in October 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Edmonton with 100 year plus lease were valued about £256,600. The average amount of ground rent was £60 billed quarterly. The lease end date was on 18 July 2077. Taking into account 52 years remaining we calculated the premium to the freeholder for the lease extension to be within £41,800 and £48,400 exclusive of legals.
An example of a Vesting Order and Purchase of freehold decision 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 affected 2 flats. The unexpired lease term was 80.01 years.