Aspley Guise leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Aspley Guise will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain cases you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Aspley Guise with in excess of one hundred years left on the lease are sometimes regarded as a ‘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 freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
The conveyancing solicitors that we work with handle Aspley Guise 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.
Following protracted negotiations with the freeholder of her basement flat in Aspley Guise, Kirsty initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The legal work completed in March 2005. The freeholder’s charges were negotiated to under 700 GBP.
In 2014 we were contacted by Mr and Mrs. O Cooper who, having moved into a purpose-built flat in Aspley Guise in March 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Aspley Guise with a long lease were valued around £205,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed in 2104. Having 79 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Last year we were contacted by Mrs Natasha Watson , who moved into a one bedroom apartment in Aspley Guise in January 2004. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable residencies in Aspley Guise with a long lease were valued around £275,000. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated on 20 August 2093. Taking into account 68 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.