As the length of the unexpired term of a Aston on Trent domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, over 125 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner rather than later. The majority of flat owners in Aston on Trent will qualify for this right; that being said a conveyancer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | 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. |
Regardless of whether you are a tenant or a landlord in Aston on Trent,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Aston on Trent valuers.
Last Christmas Lucas, started to get near to the eighty-year mark with the lease on his purpose- built flat in Aston on Trent. In buying his property two decades ago, the lease term was of no concern. by good luck, it dawned on him that he would soon be paying way over the odds for a lease extension. Lucas was able to extend his lease just under the wire in September. Lucas and the landlord in the end settled on the final figure of £5,500 . If he not met the deadline, the price would have escalated by a minimum £1,125.
Dr Amelia Collins owned a basement apartment in Aston on Trent in July 2010. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar premises in Aston on Trent with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 billed monthly. The lease expiry date was on 1 August 2089. Having 64 years remaining we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including professional charges.
Last Winter we were phoned by Mrs V Turner , who bought a ground floor flat in Aston on Trent in June 2004. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparable homes in Aston on Trent with 100 year plus lease were worth £184,000. The average amount of ground rent was £55 collected annually. The lease ended on 2 February 2078. Having 53 years unexpired we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including legals.