With a long leasehold property in Ashtead, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years left. Residents in Ashtead with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under eighty years left, under the relevant statute the landlord is entitled to calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Ashtead with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Ashtead,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ashtead valuers.
Jason owned a high value apartment in Ashtead being sold with a lease of a little over sixty years outstanding. Jason on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Jason to exercise his statutory right. Jason obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Christmas we were approach by Mr C Norbert , who moved into a ground floor flat in Ashtead in October 2000. We are asked if we could approximate the premium could be to extend the lease by an additional years. Similar homes in Ashtead with a long lease were valued about £210,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded on 1 May 2106. Considering the 80 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
An example of a Lease Extension matter before the tribunal for a Ashtead property is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case was in relation to 1 flat. The unexpired residue of the current lease was 60.43 years.