Aldeburgh leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Aldeburgh tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Aldeburgh you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Aldeburgh with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Aldeburgh can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
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 in-depth market knowledge procuring Aldeburgh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix was the the leasehold proprietor of a studio apartment in Aldeburgh on the market with a lease of a few days over 61 years remaining. Felix on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Felix to exercise his statutory right. Felix obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
In 2012 we were approached by Mr and Mrs. H Lefebvre who, having moved into a ground floor apartment in Aldeburgh in July 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Aldeburgh with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 invoiced annually. The lease came to a finish in 2083. Given that there were 57 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
Dr Ali Reed was assigned a lease of a basement apartment in Aldeburgh in June 2008. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical properties in Aldeburgh with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish in 2103. Taking into account 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.