Ashbourne residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
Leasehold residencies in Ashbourne with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Lease extensions in Ashbourne can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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.
Subsequent to lengthy negotiations with the landlord of her garden apartment in Ashbourne, Erin started the lease extension process as the eighty year mark was quickly nearing. The transaction was concluded in February 2010. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were phoned by Dr J Clark , who purchased a one bedroom apartment in Ashbourne in May 2006. The dilemma was if we could estimate the premium would likely be to extend the lease by an additional years. Similar properties in Ashbourne with a long lease were valued around £198,800. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded in 2080. Considering the 55 years unexpired we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.
In 2012 we were approached by Ms D Smith who, having completed a basement apartment in Ashbourne in February 2004. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Identical premises in Ashbourne with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 billed per annum. The lease lapsed on 10 June 2100. Considering the 75 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.