Aspley Guise leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Aspley Guise will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Aspley Guise with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors that we work with undertake 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 conveyancing solicitor we work with provide it.
Toby owned a studio apartment in Aspley Guise being sold with a lease of just over 72 years remaining. Toby on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Toby to invoke his statutory right. Toby procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.
Last Christmas we were called by Mrs R Robinson , who completed a purpose-built apartment in Aspley Guise in July 2006. The question was if we could estimate the premium would be for a 90 year lease extension. Identical homes in Aspley Guise with 100 year plus lease were in the region of £171,800. The average ground rent payable was £55 billed every twelve months. The lease concluded on 22 September 2075. Having 50 years outstanding we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including legals.
Last Winter we were called by Dr U Nelson , who was assigned a lease of a ground floor apartment in Aspley Guise in February 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar properties in Aspley Guise with a long lease were in the region of £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease ended on 13 September 2095. Considering the 70 years unexpired we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.