Unfortunately that a Aldershot residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Aldershot property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Aldershot will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Aldershot leasehold, as your property will be more valuable and saleable in respect of 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 Rory, started to get close to the eighty-year mark with the lease on his first floor flat in Aldershot. In buying his home twenty years previously, the length of the lease was of no concern. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Rory was able to extend his lease just ahead of time last March. Rory and the freeholder ultimately agreed on the final figure of £5,000 . If the lease had slipped to less than eighty years, the price would have escalated by a minimum £875.
Mr B Reed took over the lease of a ground floor apartment in Aldershot in October 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in Aldershot with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease terminated on 22 August 2102. Having 77 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
Last Summer we were phoned by Mr and Mrs. C Michel , who acquired a newly refurbished flat in Aldershot in March 2007. The question was if we could approximate the price would be to extend the lease by an additional years. Identical homes in Aldershot with a long lease were in the region of £265,200. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed on 5 June 2091. Considering the 66 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus costs.