Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Aylesbury. Clearly, the period of lease left reduces over time. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Aylesbury have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give due consideration before delaying your Aylesbury lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold premises in Aylesbury with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Aylesbury leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Milo, came perilously near to the 80-year threshold with the lease on his studio apartment in Aylesbury. In buying his flat two decades ago, the length of the lease was of no bearing. Thankfully, he realised he needed to take steps soon on a lease extension. Milo arranged for a lease extension just ahead of time in April. Milo and the freeholder eventually settled on sum of £5,500 . If the lease had gone below 80 years, the sum would have increased by at least £1,150.
Dr A Adams moved into a studio apartment in Aylesbury in October 2012. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical flats in Aylesbury with an extended lease were in the region of £300,000. The average ground rent payable was £50 billed yearly. The lease terminated on 25 October 2102. Taking into account 76 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.
In 2011 we were phoned by Dr Evan Wood who, having was assigned a lease of a one bedroom apartment in Aylesbury in June 1998. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar flats in Aylesbury with an extended lease were valued around £257,800. The mid-range ground rent payable was £65 invoiced annually. The lease ended in 2091. Given that there were 65 years left we approximated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of fees.