There is no doubt about it a leasehold property in Ashbourne is a wasting asset as a result of the diminishing lease term. If the lease has, more than 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Ashbourne will meet the qualifying criteria; that being said a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 conveyancers that we work with handle Ashbourne 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 conveyancing solicitor we work with provide it.
Aiden was the the leasehold owner of a 2 bedroom apartment in Ashbourne being sold with a lease of a little over 61 years outstanding. Aiden informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aiden to invoke his statutory right. Aiden procured expert advice and secured satisfactory deal without going to tribunal and readily saleable.
Mrs Bethan Adams bought a purpose-built apartment in Ashbourne in March 2005. The question was if we could estimate the premium could be for a 90 year lease extension. Comparable homes in Ashbourne with a long lease were worth £248,000. The mid-range ground rent payable was £65 invoiced monthly. The lease elapsed in 2089. Having 63 years unexpired we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including legals.
Mr and Mrs. V Lewis acquired a ground floor flat in Ashbourne in August 2000. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical flats in Ashbourne with a long lease were valued around £181,600. The average amount of ground rent was £55 billed every twelve months. The lease expiry date was in 2078. Considering the 52 years outstanding we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.