Ash residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you increased control over the value of your Ash leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Matthew, started to get close to the 80-year mark with the lease on his one bedroom apartment in Ash. In buying his flat 18 years ago, the lease term was of little significance. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Matthew arranged for a lease extension just in the nick of time in April. Matthew and the landlord eventually agreed on sum of £5,000 . If the lease had gone below eighty years, the sum would have gone up by at least £975.
In 2013 we were e-mailed by Mr and Mrs. L Wood who, having completed a basement apartment in Ash in July 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar premises in Ash with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £60 collected per annum. The lease expired on 10 November 2105. Having 80 years unexpired we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
In 2013 we were contacted by Dr I Howard who, having acquired a one bedroom apartment in Ash in October 1995. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable flats in Ash with an extended lease were in the region of £200,800. The average amount of ground rent was £65 billed annually. The lease expired in 2085. Having 60 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 not including fees.