It’s a harsh certainty that a Ashbourne residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Ashbourne property prices.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining dips under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Ashbourne will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| Leeds Building Society | |
| TSB | |
| Virgin |
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 conveyancer we work with provide it.
Finley was the the leasehold proprietor of a conversion flat in Ashbourne on the market with a lease of a little over 59 years unexpired. Finley informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Finley to invoke his statutory right. Finley obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Mr and Mrs. A Clark moved into a first floor apartment in Ashbourne in November 2011. The question was if we could estimate the price would be for a ninety year lease extension. Identical residencies in Ashbourne with 100 year plus lease were in the region of £240,600. The mid-range ground rent payable was £60 collected annually. The lease expired in 2088. Given that there were 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.
Last Christmas we were e-mailed by Ms H Clarke , who was assigned a lease of a one bedroom flat in Ashbourne in July 2011. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Similar flats in Ashbourne with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced annually. The lease concluded in 2077. Taking into account 51 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.