With a domestic leasehold premises in Ashington, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years remaining. Residents in Ashington with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has under eighty years outstanding, under the relevant statute the freeholder can calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Ashington with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Ashington can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ashington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy was the the leasehold owner of a high value flat in Ashington on the market with a lease of just over sixty years outstanding. Teddy informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Teddy to invoke his statutory right. Teddy procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last January we were called by Dr Jodie Torres , who moved into a newly refurbished apartment in Ashington in March 2002. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative residencies in Ashington with an extended lease were in the region of £280,000. The average amount of ground rent was £45 invoiced monthly. The lease ran out in 2096. Given that there were 70 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.
Last Winter we were called by Dr Kate Rodríguez , who purchased a newly refurbished apartment in Ashington in April 2010. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable homes in Ashington with 100 year plus lease were in the region of £223,400. The average amount of ground rent was £60 collected annually. The lease concluded in 2085. Having 59 years outstanding we calculated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus legals.