Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Aldermanbury. Clearly, the term of lease left reduces over time. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Aldermanbury have the right to extend the lease for a further ninety years in accordance with statute. Do give due attention before putting off your Aldermanbury lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold premises in Aldermanbury with over one hundred years remaining 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Aldermanbury can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 Aldermanbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joseph owned a 2 bedroom flat in Aldermanbury being sold with a lease of just over 61 years unexpired. Joseph informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
Mr and Mrs. K Murphy purchased a garden apartment in Aldermanbury in June 1997. The question was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Similar homes in Aldermanbury with an extended lease were worth £295,000. The mid-range amount of ground rent was £50 collected monthly. The lease ended in 2101. Having 75 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.
An example of a Lease Extension decision for a Aldermanbury residence is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case affected 2 flats. The unexpired lease term was 72.39 years.