Unfortunately that a Aughton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Aughton property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Aughton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 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 |
|---|---|
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Aughton can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 in-depth market knowledge dealing with Aughton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the landlord of her one bedroom flat in Aughton, Rebecca commenced the lease extension process as the eighty year deadline was fast advancing. The lease extension was finalised in September 2007. The freeholder’s costs were restricted to below 650 GBP.
Last Spring we were phoned by Mr V Smith , who acquired a one bedroom flat in Aughton in October 2011. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Aughton with a long lease were valued around £261,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease ended in 2077. Considering the 52 years unexpired we calculated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including expenses.
Last Summer we were called by Mr and Mrs. S Bennett , who was assigned a lease of a ground floor flat in Aughton in September 1997. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Similar properties in Aughton with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated on 9 March 2088. Taking into account 63 years as a residual term we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 not including professional charges.