Aspley Guise leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Aspley Guise tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Aspley Guise you would be well advised to check if your lease has between 70 and ninety years left. There are compelling reasons why a Aspley Guise leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Aspley Guise with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Aspley Guise can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 a wealth of experience procuring 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.
Milo owned a 2 bedroom apartment in Aspley Guise being sold with a lease of just over fifty eight years unexpired. Milo informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Dr Andrew Vincent acquired a basement flat in Aspley Guise in June 2002. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative premises in Aspley Guise with a long lease were worth £198,800. The average amount of ground rent was £55 billed quarterly. The lease lapsed on 5 May 2081. Taking into account 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.
Dr Aimee Young took over the lease of a one bedroom flat in Aspley Guise in January 2011. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Aspley Guise with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 billed quarterly. The lease end date was in 2101. Considering the 75 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.