The re-sale value of a leasehold property in Ashby de la Zouch is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded prior to the 80 year mark. Leasehold Reform legislation entitles Ashby de la Zouch qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Ashby de la Zouch,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ashby de la Zouch valuers.
In recent months William, came precariously near to the 80-year mark with the lease on his one bedroom apartment in Ashby de la Zouch. In buying his property 19 years previously, the length of the lease was of no concern. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. William arranged for a lease extension just under the wire in January. William and the landlord eventually settled on the final figure of £6,000 . If he not met the deadline, the premium would have become more exhorbitant by a minimum £1,000.
Mr and Mrs. L Ali owned a basement apartment in Ashby de la Zouch in July 2010. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparable residencies in Ashby de la Zouch with 100 year plus lease were worth £200,800. The average ground rent payable was £65 billed per annum. The lease expired in 2085. Taking into account 60 years outstanding we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of legals.
In 2012 we were e-mailed by Dr Lauren Howard who, having owned a purpose-built apartment in Ashby de la Zouch in April 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Identical homes in Ashby de la Zouch with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 invoiced monthly. The lease ran out in 2096. Given that there were 71 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.