Aldershot leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease falls under eighty years - otherwise a higher amount will be payable. Leasehold owners in Aldershot will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Aldershot lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 6 months of lengthy negotiations with the freeholder of her two bedroom apartment in Aldershot, Isabelle started the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was concluded in April 2011. The landlord’s fees were restricted to about 550 pounds.
In 2010 we were contacted by Mr Connor Flores who, having moved into a basement apartment in Aldershot in September 2009. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative homes in Aldershot with a long lease were worth £198,800. The mid-range ground rent payable was £55 collected quarterly. The lease concluded in 2081. Taking into account 55 years left we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of professional charges.
Last month we were approach by Mr and Mrs. S Campbell , who purchased a ground floor apartment in Aldershot in March 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar premises in Aldershot with a long lease were worth £300,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired in 2101. Having 75 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.