Ascot leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Ascot enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Ascot you should see if your lease has between seventy and ninety years left. There are good reasons why a Ascot flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold premises in Ascot with over 100 years unexpired 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 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 |
|---|---|
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Ascot can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ascot lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harvey was the the leasehold owner of a studio flat in Ascot on the market with a lease of fraction over fifty eight years outstanding. Harvey on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2013 we were e-mailed by Mrs Ella López who, having owned a ground floor apartment in Ascot in April 1996. The question was if we could approximate the price could be for a 90 year extension to my lease. Similar flats in Ascot with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease termination date was on 5 November 2106. Considering the 80 years remaining we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
Mr Y James purchased a basement flat in Ascot in August 2004. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar residencies in Ascot with a long lease were valued about £275,000. The average ground rent payable was £45 collected per annum. The lease finished on 14 May 2095. Taking into account 69 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.