It’s an underpublicised truth that a Aigburth residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Aigburth property market.Where your lease has approximately 90 years left, you should start considering 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 dips below 80 years - otherwise a higher premium will be due. Most flat owners in Aigburth will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Virgin | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with procure Aigburth 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 conveyancing solicitor we work with provide it.
Jake owned a conversion apartment in Aigburth on the market with a lease of just over 61 years left. Jake on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2014 we were contacted by Dr T González who, having was assigned a lease of a newly refurbished flat in Aigburth in October 2002. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical residencies in Aigburth with an extended lease were in the region of £230,800. The mid-range ground rent payable was £60 collected every twelve months. The lease ended in 2086. Having 60 years remaining we approximated the premium to the landlord to extend the lease to be between £24,700 and £28,600 not including expenses.
In 2013 we were e-mailed by Mr I Moore who, having completed a ground floor flat in Aigburth in March 2009. The question was if we could estimate the price could be for a 90 year extension to my lease. Comparative homes in Aigburth with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2106. Given that there were 80 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.