When it comes to domestic leasehold premises in Ash, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years remaining. Leasehold owners in Ash with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has under eighty years outstanding, under the relevant statute the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Ash with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a landlord in Ash,the lease extension solicitors 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.
Following unsuccessful correspondence with the landlord of her leasehold flat in Ash, Courtney initiated the lease extension process just as the lease was nearing the critical eighty-year mark. The transaction completed in September 2006. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were contacted by Mr and Mrs. D Davis , who purchased a recently refurbished apartment in Ash in August 1995. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Ash with an extended lease were valued about £260,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease finished in 2097. Taking into account 71 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
Last year we were phoned by Mr and Mrs. H King , who acquired a basement apartment in Ash in May 1995. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparable flats in Ash with a long lease were valued about £254,200. The average ground rent payable was £60 collected monthly. The lease expired in 2077. Considering the 51 years remaining we calculated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 not including costs.