Aspley Guise 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 your lease gets more expensive. It is the case that most Aspley Guise tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Aspley Guise you really ought to see if your lease has between seventy and 90 years left. There are good reasons why a Aspley Guise leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Aspley Guise can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Aspley Guise lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy negotiations with the landlord of her ground floor apartment in Aspley Guise, Holly commenced the lease extension process just as her lease was approaching the all-important eighty-year threshold. The transaction completed in July 2006. The freeholder’s charges were negotiated to a tad over 550 pounds.
Last Autumn we were called by Mr and Mrs. C Lefebvre , who took over the lease of a basement flat in Aspley Guise in February 2008. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparative premises in Aspley Guise with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease finished on 23 November 2094. Considering the 69 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
Dr B Bell owned a newly refurbished apartment in Aspley Guise in October 2001. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar flats in Aspley Guise with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected every twelve months. The lease finished on 8 August 2083. Taking into account 58 years left we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.