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 shortening lease. Where the lease has, over one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner rather than later. Many flat owners in Ashby de la Zouch will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. 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.
Leasehold premises in Ashby de la Zouch with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Ashby de la Zouch,the lease extension solicitors 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.
After lengthy correspondence with the freeholder of her one bedroom apartment in Ashby de la Zouch, Chantelle initiated the lease extension process as the 80 year threshold was quickly approaching. The lease extension was finalised in August 2008. The landlord’s costs were kept to an absolute minimum.
In 2013 we were e-mailed by Mr Alex Dupont who, having acquired a ground floor apartment in Ashby de la Zouch in October 2000. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar homes in Ashby de la Zouch with a long lease were valued around £242,600. The average ground rent payable was £45 invoiced quarterly. The lease lapsed in 2093. Having 67 years remaining we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including costs.
In 2011 we were e-mailed by Ms Morgan Díaz who, having bought a first floor apartment in Ashby de la Zouch in July 2006. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable homes in Ashby de la Zouch with an extended lease were valued about £280,000. The mid-range ground rent payable was £55 collected monthly. The lease terminated on 9 August 2104. Having 78 years left we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.