For those whose Ashton In Makerfield flat is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with undertake Ashton In Makerfield 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 conveyancer we work with provide it.
Off the back of unsuccessful negotiations with the landlord of her studio apartment in Ashton In Makerfield, Sophia started the lease extension process just as the lease was coming close to the critical eighty-year deadline. The transaction was concluded in April 2005. The freeholder’s costs were kept to an absolute minimum.
Mr Stanley Garcia completed a first floor apartment in Ashton In Makerfield in November 2010. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative flats in Ashton In Makerfield with 100 year plus lease were valued about £200,800. The average amount of ground rent was £65 invoiced annually. The lease terminated in 2085. Considering the 60 years left we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of costs.
Last Spring we were phoned by Mr B Ward , who acquired a one bedroom flat in Ashton In Makerfield in May 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Ashton In Makerfield with a long lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease terminated in 2096. Taking into account 71 years left we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.