Chances are that where you own a flat in Aughton you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The conveyancers that we work with procure Aughton 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 conveyancer we work with provide it.
In 2014 Kai, started to get close to the 80-year mark with the lease on his leasehold apartment in Aughton. In buying his property 18 years previously, the unexpired term was of minimal importance. Luckily, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Kai arranged for a lease extension just under the wire in July. Kai and the freeholder in the end settled on sum of £6,000 . If he not met the deadline, the figure would have escalated by at least £1,150.
Last Autumn we were e-mailed by Dr H Lambert , who completed a studio flat in Aughton in March 2011. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable premises in Aughton with an extended lease were valued about £225,400. The average amount of ground rent was £45 billed yearly. The lease ended in 2089. Given that there were 64 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 plus professional charges.
Last Summer we were e-mailed by Mr and Mrs. M Nguyen , who purchased a garden flat in Aughton in May 1995. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable properties in Aughton with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 billed annually. The lease ended on 27 September 2100. Given that there were 75 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.