The market value of a leasehold property in Aylestone is impacted by how long the lease has remaining. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be addressed ahead of the 80 year mark. Leasehold Reform legislation entitles Aylestone qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Aylestone with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Yorkshire Building Society |
The lawyers that we work with handle 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 lawyer we work with provide it.
Following lengthy correspondence with the landlord of her first floor apartment in Aylestone, Ella initiated the lease extension process as the 80 year mark was rapidly nearing. The legal work completed in April 2006. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were approached by Dr L David who, having completed a basement flat in Aylestone in October 1997. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Aylestone with a long lease were valued about £290,000. The mid-range amount of ground rent was £60 invoiced annually. The lease came to a finish in 2106. Having 80 years left we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
Mr and Mrs. F Lee took over the lease of a recently refurbished flat in Aylestone in August 2003. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Comparable homes in Aylestone with a long lease were worth £200,800. The average ground rent payable was £65 billed every twelve months. The lease expired on 14 March 2086. Having 60 years unexpired we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus legals.