Unfortunately that a Ascot residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Ascot property market.Where your lease has approximately 90 years left, you need to 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 dips lower than eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Ascot will be able to extend under the legislation; however a lawyer will be able to clarify if 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 has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Ascot with over 100 years left on the lease are sometimes regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ascot can be a difficult process. We recommend you procure guidance 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.
Freddie was the the leasehold proprietor of a 2 bedroom apartment in Ascot on the market with a lease of a few days over 61 years remaining. Freddie informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Freddie to exercise his statutory right. Freddie procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr M Watson purchased a basement flat in Ascot in June 2002. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical properties in Ascot with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced monthly. The lease ended in 2095. Given that there were 70 years as a residual term we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
In 2010 we were approached by Mr and Mrs. H Rivera who, having moved into a purpose-built apartment in Ascot in February 1999. We are asked if we could approximate the price could be for a 90 year lease extension. Identical properties in Ascot with an extended lease were in the region of £223,400. The average amount of ground rent was £60 invoiced per annum. The lease came to a finish on 22 August 2084. Given that there were 59 years left we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of legals.