With a domestic leasehold property in Ascot, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than eighty years left. Residents in Ascot with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has below 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Ascot can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 procuring Ascot lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley owned a high value apartment in Ascot being sold with a lease of a little over fifty eight years remaining. Stanley on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mrs J Taylor took over the lease of a ground floor apartment in Ascot in April 1995. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative flats in Ascot with an extended lease were worth £174,200. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded in 2076. Taking into account 51 years left we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
In 2012 we were called by Dr Kyle Wright who, having took over the lease of a purpose-built flat in Ascot in October 1997. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable premises in Ascot with a long lease were in the region of £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease ended in 2096. Given that there were 71 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.