The value of Aylestone leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is less than eighty years
Leasehold premises in Aylestone with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Aylestone,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Aylestone valuers.
Last October David, came perilously close to the eighty-year mark with the lease on his ground floor flat in Aylestone. In buying his home two decades ago, the lease term was of no interest. Fortunately, he noticed he needed to take steps soon on Extending the lease. David extended the lease at the eleventh hour in August. David and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If he had missed the deadline, the sum would have escalated by at least £1,100.
In 2014 we were contacted by Mr and Mrs. H Kelly who, having took over the lease of a studio apartment in Aylestone in February 2001. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Identical residencies in Aylestone with an extended lease were valued around £254,200. The average ground rent payable was £60 invoiced every twelve months. The lease finished in 2076. Given that there were 51 years unexpired we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including expenses.
Last May we were contacted by Dr Y Clarke , who took over the lease of a ground floor apartment in Aylestone in September 1998. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Aylestone with a long lease were worth £215,600. The mid-range amount of ground rent was £45 collected monthly. The lease concluded in 2087. Given that there were 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus professional charges.