Why you should start your Ashbourne lease extension

Top reasons for lease extension now:

Increase your lease and increase your Ashbourne property value

The market value of a leasehold property in Ashbourne depends on how long the lease has left to run. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be finalised in advance of the 80 year mark. Statute entitles Ashbourne qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold premises in Ashbourne with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders will not issue a mortgage with a short lease

Many banks and building societies will be unwilling to lend on a lease with less than seventy years unexpired - although this varies from lender to lender. A buyer will no doubt encounter difficulties to obtain a mortgage and this will result in your Ashbourne property becoming difficult to sell or remortgage.

Why use us for your lease extension in Ashbourne?

Engaging our service will provide you enhanced control over the value of your Ashbourne leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Ashbourne Lease Extension Case Summaries:

Luca, Ashbourne, Derbyshire

In recent months Luca, came critically near to the 80-year mark with the lease on his two bedroom apartment in Ashbourne. In buying his property 18 years previously, the lease term was of little importance. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Luca arranged for a lease extension just in the nick of time in May. Luca and the landlord who owned the flat above in the end settled on sum of £5,000 . If the lease had dipped below eighty years, the price would have become more exhorbitant by at least £1,150.

Ashbourne case:

In 2014 we were approached by Mr and Mrs. A Lee who, having bought a one bedroom flat in Ashbourne in April 2010. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical properties in Ashbourne with an extended lease were valued about £265,200. The mid-range amount of ground rent was £65 billed yearly. The lease finished in 2092. Taking into account 66 years as a residual term we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including fees.

Ashbourne case:

In 2009 we were e-mailed by Mr and Mrs. M Torres who, having was assigned a lease of a purpose-built flat in Ashbourne in July 1999. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Ashbourne with an extended lease were valued around £198,800. The mid-range ground rent payable was £55 billed annually. The lease lapsed in 2081. Taking into account 55 years outstanding we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of legals.