Unfortunately that a Aston Clinton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Aston Clinton property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. Most leasehold owners in Aston Clinton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
Lease extensions in Aston Clinton can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Aston Clinton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted negotiations with the landlord of her one bedroom flat in Aston Clinton, Isabel initiated the lease extension process as the eighty year mark was quickly coming. The lease extension was finalised in October 2011. The landlord’s costs were kept to an absolute minimum.
In 2011 we were called by Dr O Moore who, having bought a first floor flat in Aston Clinton in February 2000. The question was if we could approximate the price could be to extend the lease by an additional years. Comparative flats in Aston Clinton with an extended lease were worth £210,600. The average ground rent payable was £45 invoiced monthly. The lease lapsed on 12 May 2087. Given that there were 62 years outstanding we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including expenses.
In 2013 we were called by Dr Jade Taylor who, having purchased a first floor flat in Aston Clinton in May 1995. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Comparative flats in Aston Clinton with 100 year plus lease were worth £265,000. The average ground rent payable was £50 collected yearly. The lease concluded in 2098. Considering the 73 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.