Aylesbury residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold residencies in Aylesbury with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| 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. |
Using our service will provide you increased control over the value of your Aylesbury leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her leasehold flat in Aylesbury, Charlotte commenced the lease extension process as the eighty year deadline was fast coming. The legal work completed in April 2013. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. S Martin acquired a garden flat in Aylesbury in May 2001. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Identical flats in Aylesbury with a long lease were in the region of £280,000. The average ground rent payable was £45 invoiced quarterly. The lease terminated on 6 April 2094. Considering the 69 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.
Last Summer we were approach by Ms K Stewart , who moved into a garden flat in Aylesbury in May 2009. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Aylesbury with 100 year plus lease were worth £216,000. The average ground rent payable was £60 billed yearly. The lease ran out in 2083. Having 58 years remaining we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of costs.