Ashington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Ashington residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ashington you should check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| 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 |
Engaging our service will provide you increased control over the value of your Ashington leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her basement flat in Ashington, Freya initiated the lease extension process as the 80 year threshold was rapidly approaching. The legal work was concluded in March 2014. The freeholder’s fees were negotiated to slightly above 550 GBP.
In 2011 we were e-mailed by Mr and Mrs. I Hall who, having acquired a basement apartment in Ashington in September 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative homes in Ashington with a long lease were worth £230,800. The average amount of ground rent was £60 billed annually. The lease end date was in 2086. Considering the 60 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 not including expenses.
In 2010 we were approached by Dr Dylan Baker who, having purchased a one bedroom flat in Ashington in July 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Ashington with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ran out in 2106. Having 80 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.