With a residential leasehold premises in Ashford, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long 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 increases markedly particularly once there are less than 80 years left. Leasehold owners in Ashford with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has below eighty years outstanding, under the current statute the freeholder can calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Ashford with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Ashford valuers.
In recent months Tyler, came precariously close to the 80-year mark with the lease on his first floor flat in Ashford. In buying his home two decades ago, the unexpired term was of minimal relevance. Fortunately, he recognised he would imminently be paying way over the odds for a lease extension. Tyler arranged for a lease extension just ahead of time last March. Tyler and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If the lease had descended to less than eighty years, the amount would have become more costly by a minimum £1,125.
Last year we were contacted by Mr and Mrs. J Petit , who owned a purpose-built apartment in Ashford in August 1995. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Identical properties in Ashford with a long lease were valued around £168,800. The average ground rent payable was £60 collected yearly. The lease finished on 2 January 2080. Taking into account 55 years left we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired term as at the valuation date was 82.93 years.