When it comes to residential leasehold property in Aldridge, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years remaining. Residents in Aldridge with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When the lease term has under eighty years left, under the relevant Act the freeholder is entitled to calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Godiva Mortgages | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Aldridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the freeholder of her two bedroom apartment in Aldridge, Rachael commenced the lease extension process as the eighty year mark was quickly advancing. The lease extension was finalised in July 2011. The landlord’s fees were restricted to slightly above 550 pounds.
Last month we were phoned by Ms W Rose , who was assigned a lease of a purpose-built flat in Aldridge in April 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Aldridge with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 billed monthly. The lease termination date was in 2077. Considering the 52 years remaining we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including expenses.
Last July we were contacted by Mr O Bonnet , who purchased a one bedroom apartment in Aldridge in September 1997. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar premises in Aldridge with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease lapsed in 2097. Having 72 years remaining we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of expenses.