Unfortunately that a Aldridge residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Aldridge property market.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 slips below 80 years - otherwise a higher premium will be payable. The majority of flat owners in Aldridge will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Aldridge with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Aldridge,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Aldridge valuers.
Last Winter Tyler, came precariously near to the eighty-year mark with the lease on his purpose- built flat in Aldridge. Having bought his home two decades ago, the lease term was of minimal relevance. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Tyler was able to extend his lease just under the wire last January. Tyler and the landlord eventually settled on the final figure of £5,500 . If he failed to meet the deadline, the sum would have increased by at least £975.
Last Christmas we were called by Mr and Mrs. C Martin , who acquired a newly refurbished apartment in Aldridge in July 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Similar properties in Aldridge with an extended lease were in the region of £213,600. The average amount of ground rent was £60 collected quarterly. The lease termination date was on 28 April 2083. Given that there were 57 years outstanding we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.
Mr and Mrs. N Wood owned a purpose-built apartment in Aldridge in August 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparative homes in Aldridge with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease finished in 2103. Considering the 77 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.