The market value of a leasehold property in Aston Clinton depends on how many years the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be concluded in advance of the 80 year cut off point. Leasehold Reform legislation enables Aston Clinton qualifying lessees to an additional term of 90 years over and above the unexpired term, at a notional rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Aston Clinton valuers.
In 2014 John, started to get close to the 80-year threshold with the lease on his one bedroom flat in Aston Clinton. In buying his home two decades ago, the length of the lease was of little concern. by good luck, he noticed he needed to take action soon on Extending the lease. John arranged for a lease extension at the eleventh hour in April. John and the freeholder via the managing agents in the end settled on a premium of £5,500 . If he had missed the deadline, the amount would have increased by a minimum £850.
In 2013 we were approached by Dr Finn Pérez who, having took over the lease of a ground floor apartment in Aston Clinton in March 2012. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Aston Clinton with an extended lease were valued about £250,000. The average amount of ground rent was £50 billed annually. The lease end date was on 21 January 2094. Having 69 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2009 we were e-mailed by Mr and Mrs. Y Sánchez who, having moved into a ground floor flat in Aston Clinton in May 1999. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Similar homes in Aston Clinton with 100 year plus lease were worth £290,000. The average amount of ground rent was £60 collected yearly. The lease finished on 10 February 2105. Considering the 80 years unexpired we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.