With a domestic leasehold property in Ash, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years remaining. Residents in Ash with a lease drawing near to 81 years left should seriously consider extending it without delay. Once the lease term has below 80 years remaining, under the relevant Act the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Ash with in excess of 100 years outstanding on the lease are often regarded as a ‘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 purchasing 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. |
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Ash,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ash valuers.
In 2014 Jayden, started to get close to the eighty-year mark with the lease on his garden apartment in Ash. Having purchased his home two decades ago, the length of the lease was of no concern. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Jayden extended the lease just in the nick of time last April. Jayden and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If he not met the deadline, the amount would have become more costly by at least £975.
In 2014 we were called by Ms Millie Patel who, having was assigned a lease of a newly refurbished flat in Ash in October 1997. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparative homes in Ash with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease lapsed in 2104. Having 78 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
Last Christmas we were contacted by Mrs M Mason , who bought a basement apartment in Ash in February 1999. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Comparative residencies in Ash with a long lease were worth £191,000. The average amount of ground rent was £65 invoiced monthly. The lease ended in 2084. Considering the 58 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 plus expenses.