The re-sale value of a leasehold property in Aspley Guise is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised well before the 80 year mark. Current legislation entitles Aspley Guise qualifying lessees to an additional term of ninety years in addition to the remaining term, at a nominal rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Aspley Guise with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Using our service will provide you increased control over the value of your Aspley Guise leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Jacob, started to get near to the 80-year threshold with the lease on his first floor flat in Aspley Guise. Having bought his flat two decades ago, the unexpired term was of no importance. Fortunately, he recognised he needed to take steps soon on Extending the lease. Jacob was able to extend his lease at the eleventh hour last August. Jacob and the freeholder via the management company subsequently agreed on the final figure of £5,000 . If the lease had slipped lower than 80 years, the sum would have gone up by at least £1,075.
Last Spring we were e-mailed by Mr and Mrs. B López , who owned a studio flat in Aspley Guise in April 2006. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative flats in Aspley Guise with an extended lease were valued around £230,800. The average amount of ground rent was £60 invoiced every twelve months. The lease ended in 2086. Taking into account 60 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 not including costs.
Last Christmas we were phoned by Ms U Martinez , who was assigned a lease of a basement apartment in Aspley Guise in January 2005. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparable flats in Aspley Guise with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ended on 15 November 2106. Given that there were 80 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.