Aston residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Aston 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 dealing with Aston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the freeholder of her studio apartment in Aston, Daisy commenced the lease extension process as the 80 year threshold was swiftly coming. The lease extension was finalised in April 2013. The freeholder’s charges were restricted to under 450 pounds.
Last month we were contacted by Ms P Ali , who moved into a studio apartment in Aston in August 2008. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative residencies in Aston with an extended lease were worth £264,000. The mid-range ground rent payable was £60 billed per annum. The lease lapsed in 2079. Having 53 years unexpired we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 not including fees.
In 2010 we were called by Mr and Mrs. A Ramírez who, having acquired a newly refurbished flat in Aston in November 2001. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable premises in Aston with 100 year plus lease were in the region of £220,400. The mid-range amount of ground rent was £45 collected annually. The lease lapsed on 18 November 2090. Having 64 years outstanding we approximated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including legals.