It’s an underpublicised certainty that a Ashton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Ashton property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term slips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Ashton will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Ashton with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society |
Lease extensions in Ashton can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 dealing with Ashton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Henry, came dangerously near to the eighty-year threshold with the lease on his first floor flat in Ashton. In buying his flat two decades ago, the length of the lease was of little importance. by good luck, he noticed he needed to take action soon on Extending the lease. Henry arranged for a lease extension just in the nick of time in July. Henry and the freeholder eventually agreed on a premium of £5,000 . If the lease had dropped below eighty years, the price would have increased by at least £975.
In 2014 we were e-mailed by Mr and Mrs. Y Parker who, having was assigned a lease of a ground floor apartment in Ashton in September 2004. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar properties in Ashton with a long lease were worth £242,600. The average ground rent payable was £45 billed per annum. The lease terminated on 5 November 2093. Having 67 years left we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including costs.
In 2013 we were approached by Mr and Mrs. F Reed who, having took over the lease of a first floor flat in Ashton in August 2003. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Identical properties in Ashton with a long lease were valued about £280,000. The mid-range ground rent payable was £55 collected every twelve months. The lease terminated on 14 November 2104. Given that there were 78 years outstanding we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.