Unfortunately that a Aspley Guise residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Aspley Guise property prices.Where your lease has approximately 90 years left, you should start thinking about 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 falls below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Aspley Guise will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Aspley Guise 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 lawyer we work with provide it.
Hugo owned a 2 bedroom flat in Aspley Guise being sold with a lease of fraction over 72 years unexpired. Hugo on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Mr O Hall moved into a one bedroom apartment in Aspley Guise in June 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Aspley Guise with an extended lease were valued around £240,600. The mid-range amount of ground rent was £65 collected annually. The lease elapsed on 3 January 2088. Taking into account 62 years outstanding we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including fees.
Mr M Parker was assigned a lease of a basement flat in Aspley Guise in January 1997. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparative properties in Aspley Guise with an extended lease were worth £179,200. The mid-range amount of ground rent was £55 collected every twelve months. The lease concluded on 16 May 2077. Given that there were 51 years as a residual term we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including fees.