Aylesbury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Aylesbury residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Aylesbury you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with over 100 years remaining is worth roughly 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 |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| National Westminster Bank | |
| Santander | |
| Skipton Building Society |
Lease extensions in Aylesbury can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Aylesbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathaniel owned a 2 bedroom flat in Aylesbury on the market with a lease of a few days over 61 years remaining. Nathaniel on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Last month we were contacted by Dr F Ricardo , who bought a basement flat in Aylesbury in April 2011. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Identical homes in Aylesbury with an extended lease were worth £230,800. The mid-range ground rent payable was £60 invoiced per annum. The lease terminated in 2086. Taking into account 60 years outstanding we approximated the premium to the landlord for the lease extension to be between £24,700 and £28,600 exclusive of fees.
Dr W Lefebvre acquired a one bedroom flat in Aylesbury in July 1995. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar homes in Aylesbury with a long lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed per annum. The lease expiry date was on 28 July 2106. Having 80 years unexpired we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.