Unfortunately that a Ash residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Ash property market.Where your lease has approximately 90 years left, you should 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 under 80 years - otherwise a higher amount will be payable. Most flat owners in Ash will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Ash with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Ash leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Hunter owned a studio apartment in Ash being marketed with a lease of just over 59 years outstanding. Hunter informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Hunter to invoke his statutory right. Hunter procured expert advice and secured an acceptable deal informally and readily saleable.
Dr A Rogers bought a ground floor apartment in Ash in October 2007. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparable properties in Ash with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected yearly. The lease concluded on 20 June 2092. Having 66 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
In 2013 we were contacted by Mr and Mrs. M Vincent who, having was assigned a lease of a ground floor flat in Ash in April 2001. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative homes in Ash with a long lease were valued about £280,000. The average amount of ground rent was £55 invoiced per annum. The lease termination date was on 1 April 2103. Given that there were 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.