With a residential leasehold property in Aston on Trent, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Anyone in Aston on Trent with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has fewer than eighty years remaining, under the relevant statute the freeholder can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Aston on Trent with over 100 years left on the lease are sometimes regarded as a ‘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 buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Aston on Trent lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following protracted negotiations with the freeholder of her first floor flat in Aston on Trent, Paige initiated the lease extension process as the 80 year threshold was swiftly approaching. The transaction was finalised in June 2011. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were e-mailed by Dr Benjamin André who, having acquired a basement flat in Aston on Trent in November 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Identical flats in Aston on Trent with a long lease were in the region of £280,000. The average ground rent payable was £45 collected every twelve months. The lease lapsed on 11 October 2095. Considering the 70 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.
In 2011 we were approached by Mr and Mrs. B Cox who, having bought a purpose-built apartment in Aston on Trent in October 2004. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Similar premises in Aston on Trent with an extended lease were valued around £223,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease terminated in 2084. Considering the 59 years remaining we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 plus professional charges.