When it comes to domestic leasehold premises in Aylesbury, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Anyone in Aylesbury with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below 80 years remaining, under the relevant statute the landlord can calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Aylesbury with in excess of 100 years unexpired 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 buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Aylesbury 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 unsuccessful correspondence with the freeholder of her two bedroom apartment in Aylesbury, Abigail started the lease extension process just as the lease was coming close to the all-important 80-year deadline. The legal work was finalised in July 2012. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mr and Mrs. S Wright who, having took over the lease of a purpose-built flat in Aylesbury in January 1997. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative properties in Aylesbury with an extended lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease terminated in 2098. Taking into account 72 years unexpired we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including fees.
Last Spring we were phoned by Mr and Mrs. L Bell , who took over the lease of a one bedroom apartment in Aylesbury in July 2010. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in Aylesbury with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2087. Given that there were 61 years unexpired we calculated the premium to the landlord for the lease extension to be within £22,800 and £26,400 plus professional charges.