Ascot leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Ascot will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Ascot 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 conveyancing solicitor we work with provide it.
In the wake of eight months of unsuccessful negotiations with the freeholder of her garden flat in Ascot, Kayleigh started the lease extension process as the eighty year deadline was quickly nearing. The transaction was concluded in July 2013. The freeholder’s charges were negotiated to below four hundred pounds.
In 2013 we were e-mailed by Dr George Bonnet who, having purchased a one bedroom apartment in Ascot in July 2005. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical flats in Ascot with a long lease were valued about £216,000. The average ground rent payable was £60 invoiced yearly. The lease concluded on 13 July 2084. Having 58 years remaining we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.
Dr Ethan Smith bought a studio flat in Ascot in May 2003. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Identical homes in Ascot with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded in 2104. Considering the 78 years unexpired we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.