There is no doubt about it a leasehold flat or house in Ashby de la Zouch is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 100 years to run then this decrease may be fractional 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 primary reason why you should extend the lease without delay. Many flat owners in Ashby de la Zouch will meet the qualifying criteria; that being said a conveyancer should be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Ashby de la Zouch with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Lease extensions in Ashby de la Zouch can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer 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 procuring Ashby de la Zouch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months John, started to get near to the 80-year mark with the lease on his studio flat in Ashby de la Zouch. Having bought his flat 18 years ago, the lease term was of minimal concern. Luckily, he noticed he needed to take action soon on Extending the lease. John was able to extend his lease at the eleventh hour in March. John and the landlord in the end agreed on an amount of £6,000 . If he failed to meet the deadline, the premium would have increased by at least £950.
Last Winter we were phoned by Mr V Cox , who bought a first floor apartment in Ashby de la Zouch in November 2000. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Ashby de la Zouch with an extended lease were valued about £191,000. The mid-range ground rent payable was £65 collected every twelve months. The lease ended in 2084. Considering the 58 years remaining we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 not including fees.
Last November we were called by Dr H Adams , who took over the lease of a first floor flat in Ashby de la Zouch in July 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Ashby de la Zouch with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced annually. The lease finished in 2095. Taking into account 69 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.