The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Aldermanbury may extend the lease for a further 90 years under legislation. Do think carefully before delaying your Aldermanbury lease extension. Shelving the costs now simply escalates the amount you will eventually be required to pay for a lease extension.
Leasehold properties in Aldermanbury with over one hundred years left on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Retaining our service will provide you increased control over the value of your Aldermanbury leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jayden, came dangerously close to the 80-year threshold with the lease on his basement apartment in Aldermanbury. In buying his property two decades ago, the unexpired term was of no importance. As luck would have it, he recognised he needed to take action soon on a lease extension. Jayden was able to extend his lease at the eleventh hour in September. Jayden and the freeholder via the management company ultimately agreed on sum of £5,000 . If the lease had slid lower than eighty years, the figure would have increased by a minimum £1,150.
In 2013 we were contacted by Mr and Mrs. T White who, having bought a studio apartment in Aldermanbury in May 1999. The question was if we could estimate the price would be to extend the lease by an additional years. Comparable flats in Aldermanbury with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 collected monthly. The lease came to a finish on 6 November 2097. Having 71 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
An example of a Lease Extension decision 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.