There is no doubt about it a leasehold flat or house in Ashton In Makerfield is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 125 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Ashton In Makerfield will qualify for this right; however a lawyer should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Ashton In Makerfield with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Reuben owned a 2 bedroom flat in Ashton In Makerfield on the market with a lease of just over fifty eight years unexpired. Reuben informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Reuben to invoke his statutory right. Reuben obtained expert advice and secured satisfactory deal informally and sell the flat.
Dr N Girard was assigned a lease of a one bedroom apartment in Ashton In Makerfield in March 1998. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Identical homes in Ashton In Makerfield with an extended lease were valued around £208,200. The mid-range ground rent payable was £65 collected quarterly. The lease expired on 24 April 2087. Taking into account 61 years unexpired we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including costs.
Last Summer we were phoned by Mr and Mrs. Y Jones , who purchased a purpose-built flat in Ashton In Makerfield in April 2004. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Ashton In Makerfield with a long lease were valued about £260,000. The mid-range ground rent payable was £50 collected monthly. The lease expiry date was in 2098. Considering the 72 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.