The closer a residential lease in Aylesbury nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years unexpired 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 consider extending sooner rather than later. Many flat owners in Aylesbury will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake 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.
Subsequent to protracted discussions with the landlord of her two bedroom flat in Aylesbury, Nicole started the lease extension process as the 80 year deadline was rapidly coming. The legal work was concluded in November 2012. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were contacted by Mr Caleb Harris , who took over the lease of a one bedroom flat in Aylesbury in January 1999. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative flats in Aylesbury with 100 year plus lease were valued around £198,800. The average amount of ground rent was £55 collected annually. The lease came to a finish in 2081. Taking into account 55 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including fees.
Last Spring we were contacted by Dr T Mercier , who owned a studio apartment in Aylesbury in March 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Aylesbury with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease ran out on 15 April 2101. Taking into account 75 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.