When it comes to residential leasehold premises in Ashton In Makerfield, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long 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 particularly when there are less than 80 years remaining. Residents in Ashton In Makerfield with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has under 80 years outstanding, under the relevant Act the landlord can calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Ashton In Makerfield with in excess of one hundred years unexpired on the lease are often referred to as ‘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 maintenance charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Ashton In Makerfield can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 procuring Ashton In Makerfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leo owned a conversion flat in Ashton In Makerfield being sold with a lease of a few days over 61 years outstanding. Leo on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2010 we were phoned by Mr and Mrs. Y Torres who, having bought a first floor apartment in Ashton In Makerfield in July 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Ashton In Makerfield with 100 year plus lease were valued around £210,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease terminated in 2088. Given that there were 62 years unexpired we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus costs.
In 2009 we were approached by Dr O García who, having completed a newly refurbished apartment in Ashton In Makerfield in May 2010. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Similar residencies in Ashton In Makerfield with an extended lease were worth £265,000. The mid-range ground rent payable was £50 billed every twelve months. The lease elapsed on 2 January 2099. Having 73 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.