With a long leasehold premises in Aldeburgh, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Leasehold owners in Aldeburgh with a lease approaching 81 years remaining should seriously think of extending it sooner than later. When the lease term has below eighty years left, under the current Act the freeholder can calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Aldeburgh,the lease extension experts 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 Aldeburgh valuers.
Last year Owen, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Aldeburgh. In buying his home 18 years previously, the unexpired term was of little bearing. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Owen extended the lease just under the wire last September. Owen and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had slipped to less than 80 years, the premium would have escalated by a minimum £875.
Dr Adam Parker moved into a newly refurbished flat in Aldeburgh in September 1997. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Identical flats in Aldeburgh with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 collected annually. The lease expired on 1 February 2077. Having 52 years left we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of fees.
Last year we were phoned by Dr Elizabeth Garcia , who moved into a basement flat in Aldeburgh in September 1997. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar properties in Aldeburgh with a long lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced annually. The lease elapsed in 2097. Having 72 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.