There is no doubt about it a leasehold property in Ashbourne is a wasting asset as a result of the shortening lease. If the residual term has, beyond 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Ashbourne will meet the qualifying criteria; however a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Ashbourne,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ashbourne valuers.
Ethan was the the leasehold proprietor of a studio flat in Ashbourne being sold with a lease of fraction over sixty years unexpired. Ethan on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2012 we were approached by Dr Joseph Collins who, having purchased a garden apartment in Ashbourne in March 2002. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar homes in Ashbourne with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced yearly. The lease expired on 9 June 2100. Having 75 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Last month we were contacted by Mrs Natalie Flores , who bought a garden apartment in Ashbourne in May 1995. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparative properties in Ashbourne with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded in 2089. Given that there were 64 years as a residual term we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.