When it comes to domestic leasehold property in Aldersgate, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Aldersgate with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once a lease has below 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Using our service gives you better control over the value of your Aldersgate leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Finn, came precariously near to the 80-year mark with the lease on his ground floor apartment in Aldersgate. In buying his property twenty years previously, the unexpired term was of no concern. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Finn extended the lease just under the wire last May. Finn and the landlord who owned the flat above ultimately agreed on the final figure of £5,000 . If he not met the deadline, the premium would have escalated by a minimum £1,000.
Mr L Ricardo purchased a purpose-built flat in Aldersgate in February 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Aldersgate with 100 year plus lease were valued around £245,000. The average amount of ground rent was £50 billed yearly. The lease came to a finish on 25 January 2094. Given that there were 68 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
An example of a Lease Extension matter before the tribunal for a Aldersgate property is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case affected 2 flats. The remaining number of years on the lease was 72.39 years.