As the length of the unexpired term of a Aldermanbury domestic lease lessens so does its value and therefore the value of your property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. Most flat owners in Aldermanbury will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Aldermanbury with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Aldermanbury can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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.
In 2014 Joseph, came very close to the 80-year mark with the lease on his ground floor apartment in Aldermanbury. Having bought his property two decades ago, the length of the lease was of no interest. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Joseph arranged for a lease extension at the eleventh hour last April. Joseph and the freeholder via the management company in the end agreed on the final figure of £6,000 . If the lease had dipped below 80 years, the amount would have increased by at least £975.
Last Autumn we were contacted by Mr and Mrs. V Davies , who owned a first floor flat in Aldermanbury in March 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Aldermanbury with a long lease were valued around £225,800. The average ground rent payable was £60 billed yearly. The lease ended on 17 October 2086. Taking into account 60 years outstanding we estimated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 not including fees.
An example of a Lease Extension decision 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 related to 2 flats. The remaining number of years on the lease was 72.39 years.