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 taken for granted in the early years due to the reduction being disguised by increases in the Aldershot property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. Most leasehold owners in Aldershot will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Aldershot with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 procure 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 conveyancing solicitor we work with provide it.
Andrew owned a conversion apartment in Aldershot on the market with a lease of a little over 59 years remaining. Andrew on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Dr B Kelly was assigned a lease of a studio flat in Aldershot in April 2001. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical properties in Aldershot with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed annually. The lease lapsed in 2083. Considering the 58 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
In 2011 we were called by Mrs D Lee who, having owned a one bedroom apartment in Aldershot in June 2005. The question was if we could approximate the price would be for a 90 year lease extension. Identical flats in Aldershot with a long lease were worth £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease elapsed in 2103. Considering the 78 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.