The nearer a domestic lease in Ashbourne nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner rather than later. Many flat owners in Ashbourne will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Ashbourne leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her garden flat in Ashbourne, Imogen initiated the lease extension process as the eighty year threshold was rapidly coming. The legal work was finalised in July 2015. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were approached by Dr Jasmine Sánchez who, having acquired a garden apartment in Ashbourne in June 2011. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative flats in Ashbourne with 100 year plus lease were valued around £191,400. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2080. Taking into account 54 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 plus professional charges.
Last month we were approach by Dr C Cook , who bought a purpose-built apartment in Ashbourne in July 2001. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar flats in Ashbourne with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed annually. The lease expired on 1 January 2100. Taking into account 74 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.