The market value of a leasehold property in Ashton In Makerfield is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be concluded well before the eighty year mark. Current legislation entitles Ashton In Makerfield qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Lease extensions in Ashton In Makerfield can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in this area.
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 dealing with 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.
Adam owned a studio flat in Ashton In Makerfield on the market with a lease of a few days over 61 years outstanding. Adam on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Adam to invoke his statutory right. Adam obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. D Bell bought a one bedroom flat in Ashton In Makerfield in August 2007. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical flats in Ashton In Makerfield with a long lease were valued about £242,600. The average amount of ground rent was £45 invoiced yearly. The lease lapsed in 2093. Taking into account 67 years unexpired we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 plus costs.
In 2012 we were approached by Ms J Lefebvre who, having completed a one bedroom apartment in Ashton In Makerfield in October 2004. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable flats in Ashton In Makerfield with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 collected per annum. The lease expired on 12 August 2104. Having 78 years left we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.