On the balance of probabilities where you own a flat in Ascot you actually own a long leasehold interest over your property
Leasehold premises in Ascot with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 |
|---|---|
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake 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.
James owned a studio flat in Ascot on the market with a lease of a few days over 61 years left. James on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were James to invoke his statutory right. James procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
In 2010 we were e-mailed by Mr and Mrs. L Edwards who, having owned a one bedroom apartment in Ascot in March 2008. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Ascot with a long lease were valued around £201,200. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed on 13 November 2082. Considering the 56 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus professional charges.
In 2012 we were called by Dr Thomas Vincent who, having owned a ground floor flat in Ascot in October 2008. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparable properties in Ascot with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced annually. The lease terminated in 2102. Considering the 76 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.