When it comes to long leasehold premises in Aylesbury, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Anyone in Aylesbury with a lease approaching 81 years left should seriously think of extending it sooner rather than later. Once a lease has under 80 years left, under the relevant statute the landlord is entitled to calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 lawyers that we work with undertake Aylesbury 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.
Owen owned a high value apartment in Aylesbury on the market with a lease of a few days over sixty years left. Owen on an informal basis approached his landlord being a well known local-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 rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Owen to invoke his statutory right. Owen procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were contacted by Mrs Ella Green , who moved into a ground floor apartment in Aylesbury in February 2009. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable flats in Aylesbury with a long lease were in the region of £205,000. The average ground rent payable was £50 billed per annum. The lease expiry date was in 2104. Considering the 79 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.
In 2010 we were contacted by Mr Leo Ricardo who, having purchased a recently refurbished flat in Aylesbury in August 2012. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Aylesbury with 100 year plus lease were worth £275,000. The average ground rent payable was £65 collected every twelve months. The lease lapsed in 2093. Considering the 68 years outstanding we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.