Why you should commence your Aylesbury lease extension

Main reasons to commence your Aylesbury lease extension today:

Increase your lease and increase your Aylesbury property value

It’s an underpublicised certainty that a Aylesbury residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Aylesbury property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. Most flat owners in Aylesbury will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.

Aylesbury property with a lease extension is almost the same value as a freehold

Leasehold premises in Aylesbury with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders may decide not to loan monies with a short lease

Most high street banks are making their criteria more stringent and a meaningful number now want flats to have a minimum of 60 if not 70 years left once the mortgage has expired. As plenty of flats in Aylesbury were created in the fifties, sixties and seventies as a result many now need to be extended if they wish to get a mortgage.

Why use us for your lease extension in Aylesbury?

The lawyers that we work with handle 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.

Aylesbury Lease Extension Case Studies:

Elizabeth, Aylesbury, Buckinghamshire,

Subsequent to unsuccessful discussions with the freeholder of her one bedroom apartment in Aylesbury, Elizabeth initiated the lease extension process as the 80 year threshold was rapidly advancing. The legal work completed in July 2005. The landlord’s charges were negotiated to approximately 500 pounds.

Aylesbury case:

Dr R Nguyen took over the lease of a one bedroom flat in Aylesbury in January 2003. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable properties in Aylesbury with an extended lease were worth £206,200. The average amount of ground rent was £60 invoiced monthly. The lease lapsed on 14 April 2082. Having 56 years as a residual term we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including costs.

Aylesbury case:

Mr and Mrs. T Rogers took over the lease of a first floor apartment in Aylesbury in February 2007. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative flats in Aylesbury with a long lease were valued about £300,000. The average amount of ground rent was £50 collected yearly. The lease came to a finish in 2102. Given that there were 76 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.