Main reasons to commence your Ashford lease extension

Main reasons to commence your Ashford lease extension today:

A Ashford lease depreciates with the years remaining on the lease.

With a long leasehold property in Ashford, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years left. Residents in Ashford with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has less than 80 years left, under the current statute the freeholder can calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.

Ashford property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders will not grant a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get concerned at around 75 years. This may cause difficulties once you wish to dispose of or refinance your flat as it will be practically unmortgageable. You may not have an imminent intention to sell but when you do your buyer must hold off for 2 years before they can commence the legal procedures for a lease extension.

Get in touch with one of our Ashford lease extension solicitors or enfranchisement solicitors

The lawyers that we work with undertake Ashford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Ashford Lease Extension Example Cases:

Ollie, Ashford, Surrey,

Ollie was the the leasehold owner of a high value apartment in Ashford being marketed with a lease of just over sixty years unexpired. Ollie informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.

Ashford case:

Mr and Mrs. I White owned a garden flat in Ashford in October 2012. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Ashford with a long lease were valued about £176,200. The average amount of ground rent was £65 invoiced yearly. The lease terminated on 4 November 2082. Having 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of legals.