Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Aston. Clearly, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Aston have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Aston lease extension. Putting off the cost now likely increases the price you will eventually have to pay for a lease extension
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Aston can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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 lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the freeholder of her basement flat in Aston, Emma started the lease extension process as the eighty year mark was swiftly nearing. The transaction was finalised in January 2005. The landlord’s costs were restricted to less than 500 GBP.
Last month we were called by Mr Arthur Moore , who completed a purpose-built flat in Aston in March 2004. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar properties in Aston with a long lease were in the region of £176,200. The average ground rent payable was £65 invoiced per annum. The lease ended in 2082. Considering the 56 years outstanding we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus expenses.
Last month we were contacted by Dr Sophie Phillips , who bought a first floor apartment in Aston in July 2000. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical flats in Aston with an extended lease were worth £237,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish in 2093. Considering the 67 years outstanding we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of expenses.