It’s an underpublicised truth that a Aylesbury residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Aylesbury property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining drops below eighty 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 extra value that a lease extension will add the property Most flat owners in Aylesbury will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Aylesbury with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Aylesbury,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Aylesbury valuers.
Oscar owned a 2 bedroom flat in Aylesbury on the market with a lease of a few days over sixty years outstanding. Oscar informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert legal guidance and secured satisfactory resolution informally and sell the flat.
In 2010 we were approached by Dr W Ricardo who, having took over the lease of a newly refurbished apartment in Aylesbury in May 2006. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Comparable premises in Aylesbury with a long lease were valued around £280,000. The average ground rent payable was £45 collected annually. The lease came to a finish on 6 June 2096. Having 70 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.
Last month we were approach by Mrs Alice Flores , who bought a first floor apartment in Aylesbury in August 1997. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical premises in Aylesbury with a long lease were worth £223,400. The average amount of ground rent was £60 billed yearly. The lease expired in 2085. Having 59 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 not including costs.