As the length of the unexpired term of a Ashton residential lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Many flat owners in Ashton will meet the qualifying criteria; that being said a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Ashton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ashton valuers.
Half a year ago Felix, came dangerously near to the eighty-year mark with the lease on his ground floor apartment in Ashton. Having bought his flat two decades ago, the length of the lease was of little significance. Luckily, it dawned on him that he would soon be paying way over the odds for a lease extension. Felix extended the lease at the eleventh hour last April. Felix and the freeholder via the managing agents ultimately agreed on the final figure of £5,000 . If he had missed the deadline, the price would have gone up by at least £900.
In 2011 we were e-mailed by Mr and Mrs. Y Stewart who, having bought a one bedroom apartment in Ashton in February 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Ashton with a long lease were worth £256,600. The mid-range ground rent payable was £60 billed monthly. The lease finished on 15 March 2076. Taking into account 52 years left we approximated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 not including costs.
In 2010 we were phoned by Mr and Mrs. J Khan who, having took over the lease of a basement flat in Ashton in May 2006. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar premises in Ashton with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 collected quarterly. The lease expired on 7 July 2087. Considering the 63 years left we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including costs.