There is no doubt about it a leasehold flat or house in Aylesford is a wasting asset as a result of the shortening lease. Where the residual term has, more than 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Aylesford will meet the qualifying criteria; nevertheless a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Luke owned a high value flat in Aylesford being sold with a lease of a few days over 59 years remaining. Luke informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last Autumn we were contacted by Dr Andrew Carter , who moved into a ground floor apartment in Aylesford in April 2007. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable flats in Aylesford with 100 year plus lease were in the region of £223,400. The average amount of ground rent was £60 invoiced per annum. The lease came to a finish in 2085. Having 59 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of professional charges.
Dr Ollie Wilson took over the lease of a first floor apartment in Aylesford in July 2005. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Similar properties in Aylesford with a long lease were in the region of £205,000. The average ground rent payable was £50 collected monthly. The lease ran out on 4 September 2105. Having 79 years left we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.