As the the remaining lease term of a Ashington residential lease lessens so does its value and therefore the value of your property. Where the lease has, more than 99 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Ashington will qualify for this right; nevertheless a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Ashington 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 conveyancing solicitor we work with provide it.
Trailing unsuccessful negotiations with the landlord of her ground floor flat in Ashington, Aimee initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction was concluded in September 2010. The landlord’s fees were restricted to approximately 450 pounds.
In 2013 we were called by Dr J Alexander who, having completed a newly refurbished apartment in Ashington in February 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical properties in Ashington with an extended lease were worth £189,000. The average amount of ground rent was £55 collected per annum. The lease expired in 2079. Taking into account 53 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.
In 2011 we were contacted by Dr E Evans who, having bought a first floor flat in Ashington in September 2000. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Ashington with an extended lease were worth £290,000. The average ground rent payable was £45 collected annually. The lease expired in 2099. Given that there were 73 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.