Aylsham leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Aylsham will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancers that we work with handle Aylsham 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.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her studio apartment in Aylsham, Molly initiated the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction completed in July 2013. The freeholder’s costs were negotiated to about 650 pounds.
Last Spring we were called by Mr and Mrs. L Simon , who completed a studio flat in Aylsham in October 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Comparable residencies in Aylsham with 100 year plus lease were valued around £245,000. The average amount of ground rent was £50 billed annually. The lease finished on 21 August 2093. Considering the 68 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Last year we were e-mailed by Dr Nathan Gómez , who acquired a one bedroom apartment in Aylsham in July 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Aylsham with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 billed monthly. The lease expiry date was on 15 August 2104. Having 79 years unexpired we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.