When it comes to long leasehold property in Ainsdale, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Residents in Ainsdale with a lease approaching 81 years left should seriously think of extending it without delay. When the lease term has under eighty years outstanding, under the relevant statute the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Ainsdale with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| 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 |
The conveyancers that we work with undertake Ainsdale 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 lawyer we work with provide it.
In 2014 Andrew, started to get close to the 80-year threshold with the lease on his leasehold flat in Ainsdale. Having purchased his home twenty years ago, the unexpired term was of no relevance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Andrew arranged for a lease extension just under the wire last April. Andrew and the freeholder eventually agreed on sum of £5,500 . If the lease had dropped lower than eighty years, the sum would have become more costly by at least £1,075.
Dr F Campbell purchased a newly refurbished flat in Ainsdale in August 1996. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable premises in Ainsdale with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 billed yearly. The lease finished in 2094. Considering the 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Last Summer we were approach by Mr S Murphy , who took over the lease of a ground floor flat in Ainsdale in April 2009. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Similar residencies in Ainsdale with a long lease were worth £216,000. The average amount of ground rent was £60 billed monthly. The lease concluded in 2083. Taking into account 58 years left we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.