With a long leasehold property in Ashington, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Residents in Ashington with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has under eighty years left, under the relevant legislation the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Ashington,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ashington valuers.
In 2014 Aarav, started to get near to the 80-year threshold with the lease on his ground floor flat in Ashington. Having bought his property two decades ago, the length of the lease was of minimal interest. Luckily, he recognised he would imminently be paying way over the odds for Extending the lease. Aarav arranged for a lease extension at the eleventh hour last June. Aarav and the freeholder via the managing agents eventually settled on the final figure of £5,000 . If he not met the deadline, the amount would have become more exhorbitant by at least £975.
In 2009 we were phoned by Mr O White who, having acquired a garden flat in Ashington in March 1996. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar homes in Ashington with a long lease were valued around £174,200. The average amount of ground rent was £55 invoiced monthly. The lease expired in 2076. Considering the 51 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of fees.
Ms Melissa Edwards bought a first floor flat in Ashington in July 2005. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Ashington with a long lease were valued about £285,000. The mid-range amount of ground rent was £45 billed monthly. The lease expired in 2096. Taking into account 71 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.