Aldermanbury leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Aldermanbury will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Aldermanbury with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Aldermanbury 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 conveyancer we work with provide it.
In the wake of 9 months of protracted correspondence with the landlord of her garden flat in Aldermanbury, Amber commenced the lease extension process as the 80 year mark was quickly nearing. The legal work was concluded in August 2010. The landlord’s costs were kept to an absolute minimum.
Last October we were e-mailed by Dr W Bailey , who took over the lease of a garden flat in Aldermanbury in August 2001. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Aldermanbury with an extended lease were worth £275,000. The average amount of ground rent was £65 invoiced yearly. The lease ended in 2094. Considering the 68 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
An example of a Lease Extension case for a Aldermanbury premises 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 number of years remaining on the existing lease(s) was 72.39 years.