Aldersbrook 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 the lease becomes more expensive. Most owners of residential leasehold property in Aldersbrook enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Aldersbrook you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Aldersbrook leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Oliver owned a studio apartment in Aldersbrook on the market with a lease of a few days over fifty eight years outstanding. Oliver on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Oliver to exercise his statutory right. Oliver obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Dr Tommy González moved into a garden apartment in Aldersbrook in February 2004. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative properties in Aldersbrook with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease lapsed in 2106. Taking into account 80 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
An example of a Freehold Enfranchisement case for a Aldersbrook residence is 9 Granville Road in June 2014. The tribunal determines the enfranchisement price payable by the applicants for the freehold was £32,548 This case was in relation to 5 flats. The unexpired term was 73.8 years.