Ashton leases on domestic deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Ashton will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as 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. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a freeholder in Ashton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ashton valuers.
After protracted discussions with the landlord of her first floor flat in Ashton, Jade commenced the lease extension process as the 80 year deadline was quickly coming. The legal work completed in February 2006. The freeholder’s costs were restricted to a tad over 450 GBP.
In 2013 we were contacted by Mrs Ella Lee who, having took over the lease of a ground floor apartment in Ashton in August 2011. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar premises in Ashton with a long lease were valued about £176,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease concluded in 2082. Considering the 56 years outstanding we approximated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including fees.
In 2014 we were phoned by Mr and Mrs. H Adams who, having bought a garden apartment in Ashton in September 2012. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparable flats in Ashton with an extended lease were valued around £242,600. The average ground rent payable was £45 billed monthly. The lease finished on 22 June 2093. Having 67 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus expenses.