With a domestic leasehold premises in Aston on Trent, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Leasehold owners in Aston on Trent with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. When a lease has under eighty years outstanding, under the current Act the landlord can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Aston on Trent with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Aston on Trent can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Aston on Trent lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the freeholder of her one bedroom flat in Aston on Trent, Samantha initiated the lease extension process just as the lease was approaching the critical eighty-year mark. The lease extension was finalised in June 2015. The landlord’s fees were kept to an absolute minimum.
Ms Elizabeth Moore bought a studio apartment in Aston on Trent in August 2011. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Aston on Trent with 100 year plus lease were valued around £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed in 2080. Considering the 54 years left we estimated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 plus professional charges.
In 2011 we were phoned by Mr and Mrs. Y Adams who, having owned a one bedroom flat in Aston on Trent in August 2004. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar premises in Aston on Trent with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 collected annually. The lease expiry date was in 2100. Given that there were 74 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.