The closer a domestic lease in Ascot nears to zero years unexpired, the more it reduces the value of the property. If the lease has, over one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Ascot will meet the qualifying criteria; however a conveyancer will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Ascot with over one hundred 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service will provide you enhanced control over the value of your Ascot leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her garden apartment in Ascot, Niamh initiated the lease extension process just as her lease was nearing the crucial eighty-year threshold. The legal work completed in May 2007. The freeholder’s costs were restricted to a tad over 550 GBP.
In 2010 we were approached by Mr Gabriel Collins who, having owned a purpose-built flat in Ascot in February 2007. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical residencies in Ascot with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease end date was on 5 October 2098. Given that there were 73 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
In 2011 we were phoned by Mr H Mercier who, having was assigned a lease of a first floor apartment in Ascot in January 1997. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable premises in Ascot with a long lease were valued about £240,600. The average ground rent payable was £60 collected quarterly. The lease expired on 2 April 2087. Considering the 62 years outstanding we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus legals.