With a domestic leasehold property in Aylestone, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Aylestone with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has less than 80 years left, under the relevant statute the freeholder can calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
The conveyancers that we work with procure Aylestone 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.
Leo owned a studio flat in Aylestone on the market with a lease of fraction over fifty eight years unexpired. Leo informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Summer we were e-mailed by Mr Ryan García , who owned a purpose-built flat in Aylestone in March 1998. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable homes in Aylestone with a long lease were worth £250,000. The mid-range ground rent payable was £50 collected yearly. The lease end date was on 6 April 2095. Having 69 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2011 we were phoned by Ms Grace Adams who, having owned a first floor flat in Aylestone in January 2012. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Aylestone with a long lease were in the region of £290,000. The average ground rent payable was £60 billed monthly. The lease concluded on 1 January 2106. Having 80 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.