The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Aldridge may extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Aldridge lease extension. Postponing the costs today simply escalates the premium you will ultimately have to pay for a lease extension.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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 |
Lease extensions in Aldridge can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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.
Arthur was the the leasehold proprietor of a conversion apartment in Aldridge on the market with a lease of just over 61 years unexpired. Arthur on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Arthur to invoke his statutory right. Arthur procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2011 we were contacted by Mr Alexander Green who, having took over the lease of a one bedroom flat in Aldridge in September 2001. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Similar flats in Aldridge with 100 year plus lease were in the region of £223,400. The average ground rent payable was £60 invoiced annually. The lease concluded on 22 June 2084. Taking into account 59 years outstanding we calculated the premium to the landlord for the lease extension to be between £27,600 and £31,800 not including legals.
Dr Leon Torres completed a newly refurbished flat in Aldridge in September 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Aldridge with an extended lease were valued about £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease terminated on 7 October 2104. Taking into account 79 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.