Chances are that if you own a flat in Ashton In Makerfield you actually own a long leasehold interest over your property
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Using our service will provide you enhanced control over the value of your Ashton In Makerfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian owned a conversion flat in Ashton In Makerfield being marketed with a lease of fraction over sixty years left. Sebastian informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Last Christmas we were phoned by Ms T François , who moved into a garden apartment in Ashton In Makerfield in July 2004. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Identical properties in Ashton In Makerfield with a long lease were worth £265,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease finished on 9 July 2100. Taking into account 74 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
In 2011 we were e-mailed by Dr Kian Lefèvre who, having acquired a first floor flat in Ashton In Makerfield in August 2008. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical residencies in Ashton In Makerfield with an extended lease were valued about £166,400. The average ground rent payable was £60 billed yearly. The lease concluded in 2080. Having 54 years remaining we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including legals.