Aylesbury residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold residencies in Aylesbury with over one hundred years unexpired 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 purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancer we work with provide it.
Last Autumn Andrew, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Aylesbury. In buying his home 18 years ago, the lease term was of little bearing. Fortunately, he recognised he would imminently be paying an escalated premium for a lease extension. Andrew extended the lease just ahead of time in March. Andrew and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had slipped below 80 years, the amount would have increased by at least £1,075.
Mrs Jade Alexander bought a garden apartment in Aylesbury in April 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative properties in Aylesbury with an extended lease were valued around £285,000. The average amount of ground rent was £45 invoiced every twelve months. The lease elapsed in 2097. Taking into account 71 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Dr Owen Lee owned a newly refurbished apartment in Aylesbury in October 2004. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar flats in Aylesbury with an extended lease were worth £230,800. The average amount of ground rent was £60 collected monthly. The lease expired on 5 August 2086. Considering the 60 years unexpired we estimated the premium to the landlord to extend the lease to be between £24,700 and £28,600 plus fees.