Aston on Trent leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Aston on Trent will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are also strict deadlines and steps to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Aston on Trent valuers.
In 2014 Jamie, came seriously close to the 80-year threshold with the lease on his studio apartment in Aston on Trent. In buying his home 18 years ago, the length of the lease was of little relevance. As luck would have it, he noticed he would soon be paying an escalated premium for a lease extension. Jamie was able to extend his lease at the eleventh hour in July. Jamie and the freeholder via the managing agents in the end settled on the final figure of £5,500 . If the lease had dipped below 80 years, the sum would have become more costly by a minimum £1,050.
In 2013 we were approached by Ms Isabel Brown who, having was assigned a lease of a studio apartment in Aston on Trent in May 2003. The question was if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Aston on Trent with a long lease were worth £240,600. The mid-range amount of ground rent was £60 billed annually. The lease ran out on 25 May 2087. Considering the 62 years left we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of fees.
In 2013 we were approached by Dr L Davis who, having moved into a basement flat in Aston on Trent in November 2012. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar flats in Aston on Trent with 100 year plus lease were valued about £174,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease ended in 2076. Taking into account 51 years unexpired we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.