The only way is down when it comes to Ashford lease terms. Ashford properties that have a remaining term less than than eighty years will drop in market price even faster, and the cost to extend your lease will rise.
Leasehold premises in Ashford with over one hundred years left on the lease are often referred to as ‘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 service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Using our service gives you enhanced control over the value of your Ashford leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oliver owned a conversion flat in Ashford on the market with a lease of a few days over 72 years unexpired. Oliver on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Oliver to exercise his statutory right. Oliver procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last year we were approach by Mr Ollie Ali , who bought a studio flat in Ashford in April 2010. The question was if we could approximate the price could be for a ninety year lease extension. Similar residencies in Ashford with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded in 2088. Given that there were 62 years remaining we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Ashford property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 82.93 years.