Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Aldeburgh. Inevitably, the length of lease remaining shortens over time. This is often overlooked and only raises itself as an issue when the residence has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Aldeburgh have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give due consideration before putting off your Aldeburgh lease extension. Holding off the cost now likely increases the price you will eventually have to pay for a lease extension
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Aldeburgh 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.
In the wake of eight months of lengthy discussions with the freeholder of her two bedroom apartment in Aldeburgh, Megan started the lease extension process just as the lease was nearing the crucial 80-year deadline. The transaction was concluded in October 2007. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. T Pérez purchased a studio apartment in Aldeburgh in January 2004. The question was if we could estimate the premium could be to extend the lease by an additional years. Similar properties in Aldeburgh with a long lease were worth £166,800. The average amount of ground rent was £50 billed quarterly. The lease terminated on 6 August 2076. Taking into account 50 years left we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus expenses.
Last month we were approach by Dr Samuel Murphy , who took over the lease of a newly refurbished apartment in Aldeburgh in November 2004. The question was if we could estimate the premium would be for a ninety year lease extension. Comparative residencies in Aldeburgh with an extended lease were valued about £280,000. The average amount of ground rent was £45 invoiced annually. The lease lapsed in 2096. Having 70 years remaining we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.