As the the remaining lease term of a Aston domestic lease diminished so does its value and therefore the value of your property. If the residual term has, beyond 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Aston will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Regardless of whether you are a tenant or a landlord in Aston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Aston valuers.
Daniel was the the leasehold proprietor of a conversion flat in Aston being marketed with a lease of a few days over 61 years left. Daniel informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last month we were called by Dr Oliver Morgan , who acquired a purpose-built apartment in Aston in March 1998. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar flats in Aston with an extended lease were valued around £186,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease finished on 28 November 2083. Considering the 58 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of expenses.
Last Autumn we were contacted by Mr M Rose , who acquired a studio apartment in Aston in July 1995. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar flats in Aston with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease expired on 13 September 2094. Considering the 69 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.