It’s a harsh truth that a Aylesbury residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Aylesbury property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Aylesbury will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| National Westminster Bank | |
| The Mortgage Works | |
| Virgin |
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 Winter Harvey, came seriously close to the eighty-year threshold with the lease on his one bedroom flat in Aylesbury. Having bought his property two decades ago, the length of the lease was of minimal bearing. Luckily, he realised he needed to take action soon on Extending the lease. Harvey extended the lease just ahead of time in September. Harvey and the freeholder eventually settled on sum of £6,000 . If he failed to meet the deadline, the price would have escalated by at least £875.
In 2014 we were approached by Mr and Mrs. H Miller who, having was assigned a lease of a basement flat in Aylesbury in June 2007. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative premises in Aylesbury with a long lease were worth £181,600. The mid-range amount of ground rent was £55 billed monthly. The lease expired in 2078. Taking into account 52 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including legals.
Mr and Mrs. O Khan bought a first floor apartment in Aylesbury in August 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Comparable properties in Aylesbury with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 billed yearly. The lease concluded in 2098. Taking into account 72 years left we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of fees.