When it comes to long leasehold property in Aston Clinton, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years left. Leasehold owners in Aston Clinton with a lease approaching 81 years left should seriously think of extending it sooner rather than later. Once a lease has less than 80 years remaining, under the relevant statute the landlord can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | 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. |
Irrespective of whether you are a tenant or a landlord in Aston Clinton,the lease extension lawyers 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 Clinton valuers.
Last Spring Owen, came precariously close to the eighty-year threshold with the lease on his two bedroom apartment in Aston Clinton. In buying his property 19 years previously, the length of the lease was of no interest. As luck would have it, he recognised he would soon be paying an inflated amount for Extending the lease. Owen extended the lease at the eleventh hour last April. Owen and the freeholder via the management company in the end agreed on sum of £6,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,125.
In 2010 we were e-mailed by Dr O Richardson who, having completed a garden flat in Aston Clinton in May 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Aston Clinton with an extended lease were worth £191,000. The average amount of ground rent was £65 collected annually. The lease termination date was in 2082. Given that there were 58 years left we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus costs.
Last Spring we were phoned by Mr and Mrs. E Adams , who acquired a purpose-built apartment in Aston Clinton in April 2011. The question was if we could approximate the price would be for a ninety year lease extension. Comparative flats in Aston Clinton with 100 year plus lease were valued about £250,000. The average ground rent payable was £50 billed quarterly. The lease lapsed in 2093. Considering the 69 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.