The market value of a leasehold property in Aldermanbury depends on how long the lease has remaining. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded prior to the eighty year mark. Leasehold Reform legislation entitles Aldermanbury qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Aldermanbury,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Aldermanbury valuers.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her first floor apartment in Aldermanbury, Natasha initiated the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction was concluded in February 2007. The landlord’s fees were kept to an absolute minimum.
Ms F Rodríguez bought a one bedroom flat in Aldermanbury in September 2012. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Similar premises in Aldermanbury with an extended lease were in the region of £300,000. The average amount of ground rent was £50 invoiced per annum. The lease concluded in 2101. Given that there were 76 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.
An example of a Lease Extension matter before the tribunal for a Aldermanbury property is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case was in relation to 2 flats. The unexpired residue of the current lease was 72.39 years.