The value of Aston on Trent leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is less than eighty years
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Aston on Trent leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Hugo owned a studio apartment in Aston on Trent on the market with a lease of a few days over 61 years unexpired. Hugo informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr K Torres was assigned a lease of a first floor apartment in Aston on Trent in September 2007. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Similar homes in Aston on Trent with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed yearly. The lease concluded in 2099. Given that there were 74 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
In 2013 we were e-mailed by Mr and Mrs. B Rivera who, having moved into a recently refurbished flat in Aston on Trent in May 2009. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Aston on Trent with a long lease were worth £243,000. The average ground rent payable was £65 invoiced monthly. The lease lapsed on 17 October 2088. Taking into account 63 years remaining we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including expenses.