When it comes to residential leasehold property in Aston on Trent, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Residents in Aston on Trent with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has less than eighty years left, under the relevant Act the landlord is entitled to calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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 75 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. |
| 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 conveyancers 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 conveyancing solicitor we work with provide it.
Off the back of unsuccessful discussions with the freeholder of her ground floor apartment in Aston on Trent, Samantha commenced the lease extension process as the 80 year mark was rapidly approaching. The legal work was finalised in October 2005. The freeholder’s charges were kept to an absolute minimum.
Mrs Chloe Davis moved into a garden apartment in Aston on Trent in April 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Aston on Trent with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 collected monthly. The lease concluded on 27 September 2105. Given that there were 79 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.
In 2011 we were e-mailed by Ms Shannon Morris who, having completed a first floor flat in Aston on Trent in March 2003. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative homes in Aston on Trent with 100 year plus lease were valued around £275,000. The average ground rent payable was £65 collected quarterly. The lease elapsed in 2094. Having 68 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.