The re-sale value of a leasehold property in Aldridge depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be finalised ahead of the eighty year cut off point. Leasehold Reform legislation entitles Aldridge qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Aldridge can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Aldridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her leasehold apartment in Aldridge, Olivia started the lease extension process just as the lease was approaching the all-important 80-year mark. The legal work was concluded in February 2005. The landlord’s charges were kept to an absolute minimum.
Mr O Norbert moved into a one bedroom apartment in Aldridge in April 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Identical properties in Aldridge with 100 year plus lease were valued about £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease lapsed in 2103. Given that there were 78 years left we estimated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 not including professional charges.
Mr and Mrs. T Lee took over the lease of a basement apartment in Aldridge in January 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar homes in Aldridge with an extended lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced yearly. The lease finished in 2092. Given that there were 67 years as a residual term we approximated the premium to the landlord for the lease extension to be within £14,300 and £16,400 not including professional charges.