There is no doubt about it a leasehold property in Ashbourne is a wasting asset as a result of the shortening lease. If the lease has, more than 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Ashbourne will meet the qualifying criteria; however a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ashbourne can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Ashbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finley owned a studio flat in Ashbourne on the market with a lease of a little over 59 years left. Finley informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finley to exercise his statutory right. Finley obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Last September we were called by Mr and Mrs. L Watson , who moved into a garden flat in Ashbourne in January 2003. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable premises in Ashbourne with an extended lease were in the region of £225,800. The average amount of ground rent was £60 collected every twelve months. The lease concluded in 2085. Having 60 years unexpired we approximated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 not including professional charges.
Dr G Johnson took over the lease of a one bedroom apartment in Ashbourne in February 1998. The question was if we could approximate the premium could be for a 90 year lease extension. Similar properties in Ashbourne with 100 year plus lease were in the region of £210,000. The average ground rent payable was £50 billed every twelve months. The lease came to a finish in 2105. Having 80 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.