The nearer a residential lease in Aylesbury gets to zero years unexpired, the more it reduces the value of the property. If the lease has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Aylesbury will meet the qualifying criteria; that being said a conveyancer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
The lawyers that we work with procure Aylesbury 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 lawyer we work with provide it.
In recent months Mason, started to get near to the eighty-year mark with the lease on his leasehold flat in Aylesbury. In buying his home twenty years previously, the lease term was of little bearing. As luck would have it, he realised he needed to take action soon on a lease extension. Mason was able to extend his lease just under the wire in April. Mason and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If he not met the deadline, the premium would have gone up by at least £975.
Mr and Mrs. R Mercier was assigned a lease of a studio apartment in Aylesbury in June 2003. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical homes in Aylesbury with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ran out on 4 July 2101. Having 76 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.
Last Autumn we were contacted by Mr and Mrs. V Ward , who took over the lease of a purpose-built flat in Aylesbury in September 1995. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Aylesbury with an extended lease were valued about £257,800. The average amount of ground rent was £65 collected quarterly. The lease ran out on 25 June 2090. Having 65 years unexpired we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including legals.