Chances are that where you own a flat in Aston you actually own a long leasehold interest over your property
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | 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. |
| 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. |
Lease extensions in Aston can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Aston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Omar owned a studio apartment in Aston being marketed with a lease of a few days over 72 years unexpired. Omar informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Omar to exercise his statutory right. Omar procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last Summer we were approach by Mr Ollie Khan , who acquired a one bedroom flat in Aston in June 1997. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative residencies in Aston with 100 year plus lease were worth £193,400. The average ground rent payable was £65 billed quarterly. The lease termination date was on 18 August 2084. Given that there were 59 years remaining we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus expenses.
Dr A Harris owned a ground floor apartment in Aston in January 2002. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Aston with 100 year plus lease were worth £250,000. The average ground rent payable was £50 billed per annum. The lease finished on 20 May 2095. Considering the 70 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.