The value of Aston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than 80 years
Leasehold residencies in Aston with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
| Yorkshire Building Society | 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. |
The conveyancers that we work with procure Aston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
During the course of the last few months Hunter, came critically near to the eighty-year threshold with the lease on his first floor flat in Aston. In buying his flat two decades ago, the length of the lease was of minimal importance. Fortunately, he realised he would imminently be paying an escalated premium for Extending the lease. Hunter was able to extend his lease at the eleventh hour last July. Hunter and the landlord subsequently agreed on sum of £5,500 . If the lease had gone to less than 80 years, the figure would have increased by at least £1,000.
Last Spring we were contacted by Mrs A Clark , who was assigned a lease of a studio apartment in Aston in May 2007. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparable residencies in Aston with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease expired in 2100. Having 76 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Mr and Mrs. B Morgan purchased a first floor flat in Aston in April 2011. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative homes in Aston with a long lease were valued around £176,200. The mid-range amount of ground rent was £65 billed yearly. The lease concluded in 2080. Having 56 years left we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including professional charges.