As the the remaining lease term of a Ashford Kent domestic lease decreases so does its value and therefore the value of your property. If the residual term has, more than 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than eighty 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 logic behind why you should consider extending sooner than later. The majority of flat owners in Ashford Kent will qualify for this right; that being said a lawyer can confirm if you are eligible to extend your lease. In limited 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 more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Retaining our service will provide you better control over the value of your Ashford Kent leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Callum, started to get near to the eighty-year mark with the lease on his basement flat in Ashford Kent. In buying his home two decades ago, the unexpired term was of little concern. by good luck, he realised he needed to take steps soon on a lease extension. Callum arranged for a lease extension just under the wire last September. Callum and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If he failed to meet the deadline, the amount would have become more exhorbitant by a minimum £1,025.
Mr D Harris was assigned a lease of a newly refurbished flat in Ashford Kent in June 2002. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Similar homes in Ashford Kent with 100 year plus lease were valued around £260,000. The mid-range amount of ground rent was £50 billed monthly. The lease concluded on 15 April 2098. Considering the 72 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
In 2011 we were called by Mr B Alexander who, having owned a purpose-built flat in Ashford Kent in April 2010. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable residencies in Ashford Kent with an extended lease were valued around £261,600. The mid-range ground rent payable was £60 invoiced monthly. The lease end date was on 20 September 2078. Considering the 52 years remaining we calculated the premium to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of professional charges.