The market value of Ashton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is below than eighty years
Leasehold premises in Ashton with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Using our service will provide you better control over the value of your Ashton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy discussions with the landlord of her studio flat in Ashton, Lucy commenced the lease extension process just as the lease was nearing the crucial 80-year threshold. The legal work completed in September 2013. The freeholder’s fees were restricted to approximately 500 pounds.
In 2012 we were phoned by Dr M Martínez who, having completed a studio apartment in Ashton in February 1998. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparative flats in Ashton with a long lease were worth £200,800. The average ground rent payable was £65 billed annually. The lease elapsed in 2086. Given that there were 60 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 not including professional charges.
Dr Milo Dupont bought a studio apartment in Ashton in February 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Ashton with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease concluded in 2097. Taking into account 71 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.