Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ashton In Makerfield. Clearly, the term of lease left reduces over time. This is often ignored and only becomes a problem when the residence needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Ashton In Makerfield have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Please give careful consideration before delaying your Ashton In Makerfield lease extension. Putting off that expense now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in Ashton In Makerfield with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. 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 |
|---|---|
| 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. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Last October Joshua, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Ashton In Makerfield. Having bought his home 19 years previously, the lease term was of no significance. Luckily, he noticed he would imminently be paying way over the odds for Extending the lease. Joshua was able to extend his lease just ahead of time last September. Joshua and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If he had missed the deadline, the premium would have escalated by a minimum £950.
In 2014 we were e-mailed by Dr A Davies who, having bought a ground floor apartment in Ashton In Makerfield in May 1998. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical homes in Ashton In Makerfield with a long lease were valued about £173,800. The mid-range amount of ground rent was £60 collected monthly. The lease finished on 27 February 2081. Taking into account 55 years left we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.
In 2009 we were called by Mr and Mrs. I David who, having completed a garden flat in Ashton In Makerfield in June 2006. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable flats in Ashton In Makerfield with a long lease were worth £235,200. The mid-range ground rent payable was £45 collected annually. The lease finished on 4 November 2092. Having 66 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.