When it comes to domestic leasehold premises in Aylesbury, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years left. Leasehold owners in Aylesbury with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has less than eighty years left, under the relevant legislation the freeholder can calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Aylesbury with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Aylesbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the freeholder of her studio apartment in Aylesbury, Katherine initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction was finalised in January 2008. The landlord’s costs were restricted to under four hundred GBP.
Last Winter we were contacted by Ms P Ramírez , who took over the lease of a garden apartment in Aylesbury in May 1998. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Aylesbury with a long lease were valued about £210,000. The mid-range amount of ground rent was £50 collected yearly. The lease finished on 26 March 2104. Considering the 80 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
Last Summer we were phoned by Dr J Martin , who took over the lease of a purpose-built apartment in Aylesbury in October 1997. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative homes in Aylesbury with an extended lease were worth £275,000. The average amount of ground rent was £45 invoiced per annum. The lease finished in 2093. Having 69 years unexpired we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.