Aston on Trent leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Aston on Trent tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Aston on Trent you must investigate if your lease has between seventy and ninety years left. There are good reasons why a Aston on Trent flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with undertake 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.
Trailing protracted correspondence with the freeholder of her studio apartment in Aston on Trent, Daisy commenced the lease extension process just as the lease was nearing the all-important 80-year mark. The transaction completed in April 2013. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were e-mailed by Dr Holly Nelson , who bought a studio apartment in Aston on Trent in November 1995. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical homes in Aston on Trent with an extended lease were valued about £223,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease expiry date was on 1 June 2084. Given that there were 59 years unexpired we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 not including costs.
Mr and Mrs. L Dupont moved into a one bedroom apartment in Aston on Trent in May 1995. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Comparable homes in Aston on Trent with a long lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease finished in 2104. Having 79 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.