The market value of a leasehold property in Ashton depends on how long the lease has remaining. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be addressed ahead of the eighty year threshold. Leasehold Reform legislation enables Ashton qualifying lessees to an additional term of ninety years on top of the remaining term, at a nominal rent (no ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Ashton with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 freeholder in Ashton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ashton valuers.
Jake owned a conversion flat in Ashton on the market with a lease of fraction over 61 years remaining. Jake informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jake to invoke his statutory right. Jake obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Last Summer we were contacted by Dr K Parker , who took over the lease of a basement flat in Ashton in June 2012. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar flats in Ashton with a long lease were valued about £176,200. The average amount of ground rent was £65 invoiced annually. The lease ran out on 16 March 2081. Considering the 56 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including professional charges.
Last Christmas we were called by Dr Hollie Lefebvre , who was assigned a lease of a first floor apartment in Ashton in January 2008. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparative properties in Ashton with an extended lease were in the region of £237,600. The average ground rent payable was £45 collected quarterly. The lease elapsed on 22 February 2092. Having 67 years unexpired we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus costs.