Main reasons to commence your Ascot lease extension

Top reasons for lease extension now:

Increase your lease and increase your Ascot property value

It’s an underpublicised truth that a Ascot residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Ascot property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Ascot will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the formalities.

Ascot property with a lease extension is almost the same value as a freehold

Leasehold premises in Ascot with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to lend with a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has meant the unexpired lease term required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Ascot lease extension solicitors or enfranchisement solicitors

Using our service gives you increased control over the value of your Ascot 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 wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Ascot Lease Extension Case Summaries:

Caitlin, Ascot, Berkshire,

In the wake of 6 months of lengthy discussions with the landlord of her basement flat in Ascot, Caitlin commenced the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work completed in August 2014. The landlord’s costs were restricted to about 450 pounds.

Ascot case:

In 2011 we were contacted by Dr Elijah Richardson who, having was assigned a lease of a one bedroom flat in Ascot in May 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Ascot with 100 year plus lease were in the region of £257,800. The average amount of ground rent was £65 billed annually. The lease elapsed in 2091. Given that there were 65 years as a residual term we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus legals.

Ascot case:

Mr and Mrs. I Clark was assigned a lease of a newly refurbished apartment in Ascot in July 2008. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Ascot with a long lease were valued around £191,400. The mid-range ground rent payable was £55 billed per annum. The lease elapsed on 3 May 2080. Having 54 years remaining we calculated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including expenses.