When it comes to residential leasehold premises in Ashford, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years remaining. Anyone in Ashford with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has fewer than eighty years outstanding, under the current legislation the freeholder is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Ashford with in excess of 100 years remaining 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Ashford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ashford valuers.
In recent months John, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Ashford. In buying his flat two decades ago, the length of the lease was of little relevance. Luckily, he recognised he would soon be paying way over the odds for a lease extension. John extended the lease at the eleventh hour in September. John and the landlord in the end agreed on an amount of £5,000 . If he had missed the deadline, the sum would have escalated by at least £1,125.
Last Autumn we were approach by Dr Y Flores , who purchased a one bedroom apartment in Ashford in July 1998. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Ashford with an extended lease were in the region of £290,000. The average amount of ground rent was £60 billed every twelve months. The lease lapsed in 2106. Given that there were 80 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.
An example of a Lease Extension matter before the tribunal for a Ashford flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The unexpired term was 82.93 years.