When it comes to residential leasehold property in Ashton In Makerfield, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Leasehold owners in Ashton In Makerfield with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once a lease has below 80 years outstanding, under the relevant legislation the freeholder can calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Ashton In Makerfield leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jake was the the leasehold owner of a 2 bedroom flat in Ashton In Makerfield being marketed with a lease of a little over 72 years left. Jake on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen 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 doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jake to invoke his statutory right. Jake obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2011 we were contacted by Mr and Mrs. U Robinson who, having moved into a one bedroom apartment in Ashton In Makerfield in November 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Ashton In Makerfield with 100 year plus lease were in the region of £208,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out in 2086. Given that there were 61 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 plus legals.
In 2010 we were approached by Mr and Mrs. E García who, having acquired a recently refurbished apartment in Ashton In Makerfield in September 2007. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical homes in Ashton In Makerfield with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished on 28 February 2097. Taking into account 72 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.