Chances are that if you own a flat in Ashton In Makerfield you actually own a long leasehold interest over your property
Leasehold premises in Ashton In Makerfield with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancers that we work with procure Ashton In Makerfield 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.
16 months ago Aaron, started to get near to the 80-year mark with the lease on his leasehold flat in Ashton In Makerfield. In buying his home two decades ago, the unexpired term was of no interest. Fortunately, he recognised he needed to take action soon on Extending the lease. Aaron arranged for a lease extension just in the nick of time in September. Aaron and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If the lease had descended below eighty years, the premium would have become more costly by at least £1,125.
Ms C Taylor was assigned a lease of a one bedroom flat in Ashton In Makerfield in January 1998. The question was if we could estimate the premium could be for a ninety year lease extension. Comparable properties in Ashton In Makerfield with a long lease were valued about £264,000. The average ground rent payable was £60 billed per annum. The lease finished on 5 April 2077. Considering the 53 years outstanding we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including fees.
Dr Charlie Clarke was assigned a lease of a ground floor flat in Ashton In Makerfield in March 1999. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparative properties in Ashton In Makerfield with an extended lease were valued about £225,400. The average amount of ground rent was £45 collected per annum. The lease finished on 16 February 2088. Having 64 years remaining we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus expenses.