For anyone whose Aston home is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Halifax | |
| TSB | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Last October Samuel, came perilously close to the 80-year mark with the lease on his two bedroom apartment in Aston. Having bought his home twenty years ago, the lease term was of no bearing. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Samuel extended the lease at the eleventh hour in January. Samuel and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £950.
In 2013 we were approached by Mr and Mrs. V Simon who, having took over the lease of a ground floor flat in Aston in May 2008. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical properties in Aston with 100 year plus lease were in the region of £237,600. The average amount of ground rent was £45 collected every twelve months. The lease ran out on 13 October 2093. Having 67 years left we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus professional charges.
In 2010 we were phoned by Mr Jamie García who, having was assigned a lease of a purpose-built flat in Aston in July 2009. The question was if we could approximate the premium could be for a 90 year lease extension. Comparative flats in Aston with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 billed annually. The lease lapsed in 2103. Taking into account 77 years left we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.