Why you should start your Aylesford lease extension

Main reasons to commence your Aylesford lease extension today:

A Aylesford leasehold property depreciates with the years remaining on the lease.

The market value of Aylesford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is less than 80 years

Aylesford property with a lease extension has roughly the same value as a freehold

Leasehold properties in Aylesford with more than 100 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 reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not issue a mortgage on a short lease

Banks and building societies are tightening their criteria and a meaningful number now want flats to have a minimum of sixty if not seventy years remaining at the end of the mortgage. Given that plenty of flats in Aylesford were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

Why use us for your lease extension in Aylesford?

The lawyers that we work with handle Aylesford 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.

Aylesford Lease Extension Case Studies:

Rory, Aylesford, Kent,

Rory owned a conversion flat in Aylesford being sold with a lease of just over fifty eight years unexpired. Rory on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Rory to invoke his statutory right. Rory obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Aylesford case:

Last Spring we were called by Mr and Mrs. C Parker , who acquired a basement apartment in Aylesford in November 2006. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar properties in Aylesford with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish in 2105. Having 79 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.

Aylesford case:

In 2012 we were e-mailed by Dr W Bennett who, having acquired a garden apartment in Aylesford in May 1995. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical residencies in Aylesford with a long lease were worth £275,000. The average ground rent payable was £65 collected quarterly. The lease end date was on 24 March 2094. Given that there were 68 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.