Unfortunately that a Aston residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Aston property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Aston will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Aston with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Aston,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Aston valuers.
Two years ago Connor, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Aston. In buying his property two decades ago, the unexpired term was of minimal importance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Connor extended the lease at the eleventh hour last September. Connor and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If he failed to meet the deadline, the premium would have increased by at least £1,150.
Last Summer we were phoned by Mr and Mrs. U Nelson , who completed a one bedroom apartment in Aston in April 1997. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable flats in Aston with a long lease were worth £255,000. The average amount of ground rent was £50 billed per annum. The lease ran out in 2096. Considering the 71 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Last year we were e-mailed by Mrs Victoria Rivera , who acquired a one bedroom apartment in Aston in July 1999. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparative properties in Aston with an extended lease were in the region of £254,200. The mid-range ground rent payable was £60 billed per annum. The lease termination date was in 2076. Given that there were 51 years unexpired we calculated the premium to the landlord for the lease extension to be within £43,700 and £50,600 not including costs.