Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Aughton. Inevitably, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Aughton have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful deliberation before putting off your Aughton lease extension. Putting off the cost now simply increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Aughton with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Aughton,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 in-depth market knowledge and the close ties they enjoy with Aughton valuers.
Following protracted correspondence with the freeholder of her basement apartment in Aughton, Lucy initiated the lease extension process as the 80 year deadline was rapidly approaching. The legal work was finalised in March 2010. The landlord’s costs were kept to an absolute minimum.
In 2010 we were contacted by Ms Natasha Clarke who, having owned a purpose-built flat in Aughton in October 2010. We are asked if we could estimate the price could be to extend the lease by ninety years. Similar flats in Aughton with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 invoiced annually. The lease lapsed on 23 September 2085. Taking into account 59 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including professional charges.
Last Spring we were contacted by Dr C Ward , who owned a garden apartment in Aughton in June 2001. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Aughton with an extended lease were in the region of £255,000. The average ground rent payable was £50 billed quarterly. The lease ran out on 10 October 2096. Having 70 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.