Ashford Kent leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Ashford Kent enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Ashford Kent you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Ashford Kent with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Ashford Kent can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Ashford Kent lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
William was the the leasehold owner of a high value apartment in Ashford Kent being sold with a lease of just over fifty eight years remaining. William on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were William to invoke his statutory right. William obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were contacted by Mr and Mrs. C Brown who, having owned a one bedroom flat in Ashford Kent in March 1996. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical flats in Ashford Kent with an extended lease were worth £270,000. The average amount of ground rent was £55 invoiced annually. The lease terminated on 22 November 2099. Given that there were 74 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last Winter we were e-mailed by Mrs Kayleigh Bertrand , who purchased a garden apartment in Ashford Kent in May 2006. The dilemma was if we could approximate the price could be to prolong the lease by 90 years. Similar premises in Ashford Kent with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 billed annually. The lease terminated in 2079. Given that there were 54 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus professional charges.