When it comes to long leasehold premises in Ashby de la Zouch, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years remaining. Residents in Ashby de la Zouch with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has below eighty years left, under the relevant Act the landlord is entitled to calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Ashby de la Zouch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Noah owned a studio apartment in Ashby de la Zouch on the market with a lease of a little over 61 years outstanding. Noah on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
In 2010 we were approached by Dr Max Hernández who, having completed a newly refurbished apartment in Ashby de la Zouch in November 2006. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable properties in Ashby de la Zouch with an extended lease were worth £232,800. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished on 8 April 2090. Given that there were 65 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
In 2014 we were e-mailed by Mrs Aimee Sharif who, having was assigned a lease of a one bedroom apartment in Ashby de la Zouch in November 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Ashby de la Zouch with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded in 2101. Having 76 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.