Top reasons for Aston Clinton lease extension

Top reasons for lease extension now:

A Aston Clinton leasehold property depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Aston Clinton. Clearly, the length of lease left shortens over time. This is often ignored and only becomes a problem when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Aston Clinton have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Do give due attention before putting off your Aston Clinton lease extension. Putting off that expense now likely increases the price you will eventually have to pay to extend your lease

An extended lease is almost the same value as a freehold

It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders will not issue a mortgage on a short lease

Most high street banks are making their criteria more stringent and a meaningful number now require flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Considering many flats in Aston Clinton were built in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to get a mortgage.

Get in touch with one of our Aston Clinton lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Aston Clinton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Aston Clinton valuers.

Aston Clinton Lease Extension Case Studies:

Riley, Aston Clinton, Buckinghamshire

Last year Riley, came dangerously close to the eighty-year threshold with the lease on his purpose- built flat in Aston Clinton. In buying his flat twenty years ago, the unexpired term was of minimal concern. Luckily, he recognised he would soon be paying an inflated amount for a lease extension. Riley extended the lease just under the wire last May. Riley and the freeholder in the end agreed on a premium of £6,000 . If the lease had slipped below 80 years, the amount would have become more costly by a minimum £900.

Aston Clinton case:

In 2014 we were e-mailed by Dr Isabel Rodríguez who, having was assigned a lease of a ground floor apartment in Aston Clinton in June 2000. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Aston Clinton with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 invoiced every twelve months. The lease termination date was on 28 August 2104. Given that there were 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.

Aston Clinton case:

Mrs U James moved into a ground floor flat in Aston Clinton in June 1996. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Aston Clinton with an extended lease were valued about £191,000. The average amount of ground rent was £65 billed annually. The lease expired on 16 August 2084. Considering the 58 years left we estimated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 not including expenses.