Unfortunately that a Ashton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Ashton property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. The majority of flat owners in Ashton will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Ashton with over 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancers that we work with undertake Ashton 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.
In the wake of eight months of lengthy negotiations with the freeholder of her garden apartment in Ashton, Olivia started the lease extension process as the eighty year deadline was swiftly approaching. The lease extension completed in February 2005. The landlord’s costs were kept to an absolute minimum.
Dr U Vincent bought a purpose-built apartment in Ashton in June 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative homes in Ashton with a long lease were in the region of £225,400. The mid-range ground rent payable was £45 billed per annum. The lease finished on 22 September 2090. Having 64 years as a residual term we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus expenses.
Mrs S Robinson purchased a newly refurbished flat in Ashton in April 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable flats in Ashton with a long lease were valued about £270,000. The mid-range ground rent payable was £55 billed quarterly. The lease lapsed in 2101. Having 75 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.