The market value of a leasehold property in Ashton is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised in advance of the 80 year cut off point. Leasehold Reform legislation entitles Ashton qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Ashton with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Halifax | |
| The Mortgage Works |
Lease extensions in Ashton can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 a wealth of experience procuring Ashton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the landlord of her ground floor apartment in Ashton, Ella commenced the lease extension process just as her lease was coming close to the crucial 80-year mark. The lease extension was concluded in July 2011. The landlord’s charges were kept to an absolute minimum.
Dr Sebastian Girard owned a one bedroom flat in Ashton in July 2012. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar properties in Ashton with 100 year plus lease were worth £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease ended in 2101. Having 75 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Mr and Mrs. M Morris completed a studio apartment in Ashton in November 1996. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative flats in Ashton with a long lease were valued around £173,800. The average amount of ground rent was £65 billed monthly. The lease terminated in 2081. Having 55 years outstanding we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.