With a long leasehold property in Aintree, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Anyone in Aintree with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has under 80 years outstanding, under the relevant Act the freeholder can calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Yorkshire Building Society | 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. |
The conveyancing solicitors that we work with undertake Aintree 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.
14 months ago Reuben, started to get near to the 80-year mark with the lease on his leasehold apartment in Aintree. In buying his property two decades ago, the lease term was of no bearing. As luck would have it, he realised he needed to take action soon on a lease extension. Reuben extended the lease at the eleventh hour last August. Reuben and the freeholder in the end settled on an amount of £6,000 . If he not met the deadline, the premium would have become more costly by a minimum £850.
In 2009 we were e-mailed by Ms Samantha Allen who, having completed a one bedroom flat in Aintree in October 2006. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable residencies in Aintree with an extended lease were in the region of £186,000. The average ground rent payable was £65 billed every twelve months. The lease expired in 2083. Considering the 58 years as a residual term we estimated the premium to the landlord for the lease extension to be within £24,700 and £28,600 not including costs.
In 2012 we were approached by Dr O Parker who, having took over the lease of a studio flat in Aintree in January 2000. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Aintree with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 collected monthly. The lease ended on 24 October 2093. Taking into account 68 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.