Aspley Guise leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Aspley Guise will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property 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 ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Aspley Guise,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Aspley Guise valuers.
Stanley was the the leasehold owner of a high value flat in Aspley Guise being marketed with a lease of fraction over fifty eight years unexpired. Stanley on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Stanley to invoke his statutory right. Stanley procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Last Autumn we were contacted by Mrs Ellie Rose , who acquired a purpose-built flat in Aspley Guise in March 2002. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative residencies in Aspley Guise with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease elapsed in 2104. Considering the 78 years remaining we calculated the compensation to the landlord to extend the lease to be within £7,600 and £8,800 exclusive of costs.
In 2013 we were approached by Mrs Yasmin David who, having bought a one bedroom apartment in Aspley Guise in March 2000. The question was if we could approximate the price would be for a 90 year lease extension. Comparable homes in Aspley Guise with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 collected annually. The lease ran out on 25 March 2093. Taking into account 67 years outstanding we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including professional charges.