As the length of the unexpired term of a Ashbourne domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, over one hundred years to run then this decrease may be of little impact however 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 be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Ashbourne will qualify for this right; that being said a conveyancer can advise if you qualify 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 premises in Ashbourne with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ashbourne can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ashbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Toby, started to get near to the 80-year mark with the lease on his purpose- built flat in Ashbourne. In buying his property two decades ago, the lease term was of no importance. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Toby extended the lease just in the nick of time in July. Toby and the freeholder in the end settled on sum of £6,000 . If the lease had fallen below 80 years, the amount would have escalated by at least £1,100.
In 2014 we were called by Dr Henry Gómez who, having took over the lease of a first floor apartment in Ashbourne in November 2006. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Ashbourne with 100 year plus lease were valued around £189,000. The average ground rent payable was £55 billed quarterly. The lease ran out in 2079. Given that there were 53 years remaining we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.
In 2011 we were contacted by Ms Isabella Thomas who, having took over the lease of a ground floor apartment in Ashbourne in July 2012. The question was if we could estimate the premium would be for a ninety year lease extension. Comparative flats in Ashbourne with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 billed annually. The lease terminated in 2099. Given that there were 73 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.