Aspley Guise leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Aspley Guise residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Aspley Guise you would be well advised to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Aspley Guise with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors that we work with undertake Aspley Guise 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 conveyancer we work with provide it.
Aarav was the the leasehold proprietor of a studio flat in Aspley Guise being marketed with a lease of fraction over fifty eight years unexpired. Aarav informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2011 we were called by Mr and Mrs. I Morgan who, having bought a basement flat in Aspley Guise in June 1999. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparative properties in Aspley Guise with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 billed quarterly. The lease elapsed in 2092. Taking into account 67 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 not including fees.
Mr N Khan bought a studio apartment in Aspley Guise in September 2006. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Aspley Guise with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £60 billed monthly. The lease expiry date was in 2081. Having 56 years as a residual term we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus expenses.