The closer a domestic lease in Ashbourne nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 99 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Ashbourne will meet the qualifying criteria; however a lawyer will be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Ashbourne with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| 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 |
| 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. |
Retaining our service gives you better control over the value of your Ashbourne leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Henry owned a high value apartment in Ashbourne on the market with a lease of a little over sixty years unexpired. Henry on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2014 we were phoned by Mr F Ramírez who, having moved into a purpose-built flat in Ashbourne in February 2000. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Ashbourne with a long lease were valued about £208,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease end date was on 15 October 2083. Considering the 57 years outstanding we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
Ms Kirsty Alexander took over the lease of a one bedroom flat in Ashbourne in March 1999. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Similar residencies in Ashbourne with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed in 2103. Considering the 77 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.