On the balance of probabilities where you own a flat in Aldridge you actually own a long leasehold interest over your property
Leasehold residencies in Aldridge with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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; |
| 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. |
| 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. |
Lease extensions in Aldridge can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 a wealth of experience procuring Aldridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Toby, came critically close to the 80-year threshold with the lease on his two bedroom flat in Aldridge. In buying his home 19 years previously, the unexpired term was of no relevance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Toby arranged for a lease extension just in the nick of time in August. Toby and the landlord eventually settled on an amount of £5,000 . If he not met the deadline, the price would have escalated by at least £975.
Mr F Nelson was assigned a lease of a studio apartment in Aldridge in February 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Aldridge with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £45 billed per annum. The lease expired on 10 November 2096. Considering the 71 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Last Spring we were approach by Dr Tommy Dupont , who bought a basement apartment in Aldridge in January 1999. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparative residencies in Aldridge with an extended lease were worth £230,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease concluded on 17 November 2085. Taking into account 60 years outstanding we approximated the premium to the landlord for the lease extension to be within £24,700 and £28,600 not including professional charges.