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 your lease becomes more expensive. The majority of 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 must see if your lease has between seventy and ninety years remaining. There are good reasons why a Aldersbrook flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service gives you enhanced control over the value of your Aldersbrook leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Sebastian, started to get close to the eighty-year mark with the lease on his studio apartment in Aldersbrook. Having purchased his property two decades ago, the unexpired term was of minimal relevance. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Sebastian was able to extend his lease just under the wire last August. Sebastian and the freeholder via the managing agents subsequently settled on an amount of £5,000 . If he not met the deadline, the price would have increased by at least £975.
Last year we were called by Ms Zoe Miller , who owned a basement flat in Aldersbrook in July 2005. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar homes in Aldersbrook with 100 year plus lease were valued about £260,200. The mid-range amount of ground rent was £65 collected annually. The lease elapsed on 27 November 2092. Taking into account 66 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Aldersbrook property 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.