Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Ashton. Clearly, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Ashton have the right to extend the lease for an additional 90 years under statute. Please give careful attention before putting off your Ashton lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Ashton with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Ashton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ashton valuers.
Last year Lucas, came critically close to the 80-year mark with the lease on his leasehold flat in Ashton. Having purchased his flat 19 years ago, the lease term was of little concern. Fortunately, he noticed he needed to take steps soon on a lease extension. Lucas extended the lease just under the wire last August. Lucas and the freeholder ultimately settled on a premium of £6,000 . If the lease had descended to less than 80 years, the sum would have increased by a minimum £1,100.
Mr and Mrs. S Ricardo completed a one bedroom flat in Ashton in November 1998. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Identical premises in Ashton with 100 year plus lease were worth £168,800. The average amount of ground rent was £60 collected annually. The lease terminated in 2080. Having 55 years remaining we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.
In 2009 we were phoned by Mr Blake Petit who, having was assigned a lease of a one bedroom apartment in Ashton in September 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Ashton with an extended lease were valued around £232,800. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish on 21 June 2090. Given that there were 65 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.