Aylesbury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Aylesbury enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Aylesbury you really ought to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Aylesbury with in excess of 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Aylesbury leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Finn, came perilously close to the eighty-year mark with the lease on his studio apartment in Aylesbury. In buying his property two decades ago, the unexpired term was of no bearing. Luckily, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Finn arranged for a lease extension just in the nick of time last January. Finn and the landlord in the end settled on an amount of £5,000 . If he failed to meet the deadline, the premium would have become more costly by a minimum £1,000.
Last month we were contacted by Mr and Mrs. O Rose , who completed a studio apartment in Aylesbury in February 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar flats in Aylesbury with an extended lease were worth £200,000. The average ground rent payable was £50 invoiced annually. The lease lapsed on 14 October 2102. Having 77 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
Dr H Martínez completed a one bedroom apartment in Aylesbury in August 2001. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative premises in Aylesbury with an extended lease were valued around £265,200. The mid-range ground rent payable was £65 billed per annum. The lease came to a finish on 14 May 2091. Considering the 66 years as a residual term we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including legals.