There is no doubt about it a leasehold flat or house in Aston on Trent is a wasting asset as a result of the shortening lease. Where the lease has, over 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Aston on Trent will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Aston on Trent 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 lawyer we work with provide it.
Half a year ago Alex, came seriously near to the eighty-year threshold with the lease on his basement flat in Aston on Trent. Having bought his home two decades ago, the unexpired term was of no importance. Fortunately, he recognised he needed to take action soon on a lease extension. Alex arranged for a lease extension just under the wire last January. Alex and the landlord eventually agreed on the final figure of £5,500 . If the lease had dipped to less than 80 years, the price would have become more costly by at least £1,075.
Mr and Mrs. U Martin owned a garden flat in Aston on Trent in October 1997. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative homes in Aston on Trent with an extended lease were in the region of £200,000. The average amount of ground rent was £50 billed per annum. The lease expiry date was on 2 April 2103. Taking into account 78 years remaining we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
Last Christmas we were called by Mr and Mrs. Y Martin , who took over the lease of a one bedroom flat in Aston on Trent in May 1997. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative residencies in Aston on Trent with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 collected per annum. The lease came to a finish in 2092. Taking into account 67 years left we approximated the premium to the landlord to extend the lease to be between £14,300 and £16,400 plus fees.