On the balance of probabilities where you own a flat in Aldersbrook you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Aldersbrook,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 Aldersbrook valuers.
During the course of the last few months Elijah, came perilously close to the 80-year mark with the lease on his studio apartment in Aldersbrook. Having purchased his flat two decades ago, the unexpired term was of no relevance. by good luck, he became aware that he would imminently be paying way over the odds for Extending the lease. Elijah extended the lease just under the wire in June. Elijah and the landlord eventually agreed on the final figure of £5,500 . If the lease had slid to less than eighty years, the figure would have become more exhorbitant by at least £1,150.
Mr and Mrs. R Smith acquired a first floor flat in Aldersbrook in August 2004. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Identical homes in Aldersbrook with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ended in 2103. Given that there were 78 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Aldersbrook premises 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 as at the valuation date was 73.8 years.