There is no doubt about it a leasehold flat or house in Ash is a wasting asset as a result of the diminishing lease term. Where the lease has, over 99 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. The majority of flat owners in Ash will qualify for this right; that being said a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Ash can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ash lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Reuben, started to get close to the eighty-year threshold with the lease on his studio apartment in Ash. In buying his home 19 years ago, the length of the lease was of minimal concern. Thankfully, he noticed he would soon be paying an escalated premium for Extending the lease. Reuben arranged for a lease extension at the eleventh hour in July. Reuben and the freeholder in the end settled on sum of £5,500 . If he not met the deadline, the sum would have become more exhorbitant by at least £1,125.
In 2013 we were contacted by Mr and Mrs. T Girard who, having moved into a recently refurbished flat in Ash in August 2009. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical residencies in Ash with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 billed annually. The lease finished in 2085. Having 59 years remaining we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of costs.
Last Autumn we were approach by Ms Natalie François , who owned a one bedroom flat in Ash in April 1997. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Identical homes in Ash with a long lease were valued around £255,000. The average amount of ground rent was £50 billed quarterly. The lease lapsed in 2096. Considering the 70 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.