On the balance of probabilities where you own a flat in Aldermanbury you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 freeholder in Aldermanbury,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Aldermanbury valuers.
Alex owned a high value flat in Aldermanbury on the market with a lease of a little over fifty eight years remaining. Alex informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Alex to exercise his statutory right. Alex procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Dr C Gray completed a one bedroom apartment in Aldermanbury in February 2001. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable properties in Aldermanbury with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed in 2095. Considering the 70 years remaining we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
An example of a Lease Extension case for a Aldermanbury property 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 term was 72.39 years.