Ashbourne leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher premium will be payable. Leasehold owners in Ashbourne will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Ashbourne can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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 in-depth market knowledge 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 Spring Seth, came perilously near to the eighty-year mark with the lease on his studio flat in Ashbourne. Having bought his flat two decades ago, the lease term was of little significance. As luck would have it, he realised he would soon be paying way over the odds for a lease extension. Seth extended the lease just under the wire in January. Seth and the freeholder eventually agreed on the final figure of £5,500 . If he failed to meet the deadline, the price would have increased by a minimum £1,000.
Last August we were called by Mr and Mrs. P Torres , who was assigned a lease of a studio apartment in Ashbourne in July 2006. We are asked if we could estimate the price would be to prolong the lease by 90 years. Similar premises in Ashbourne with 100 year plus lease were worth £171,800. The mid-range amount of ground rent was £55 billed annually. The lease end date was in 2076. Taking into account 50 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.
Mr Harrison James moved into a one bedroom apartment in Ashbourne in February 1995. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical flats in Ashbourne with a long lease were valued around £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease ran out in 2096. Given that there were 70 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.