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 near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when a lease still has 82 years to run so that a lease extension can be addressed prior to the 80 year mark. Leasehold Reform legislation entitles Ashton In Makerfield qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Ashton In Makerfield with in excess of 100 years left on the lease are often regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
The lawyers that we work with procure 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 lawyer we work with provide it.
Joseph owned a conversion apartment in Ashton In Makerfield being marketed with a lease of fraction over sixty years remaining. Joseph on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Joseph to invoke his statutory right. Joseph procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. R Moreau took over the lease of a studio apartment in Ashton In Makerfield in April 2002. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparable premises in Ashton In Makerfield with an extended lease were valued around £183,600. The average ground rent payable was £65 invoiced monthly. The lease finished in 2083. Given that there were 57 years left we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
Dr U Bertrand was assigned a lease of a one bedroom flat in Ashton In Makerfield in May 1998. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Similar premises in Ashton In Makerfield with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ended in 2094. Having 68 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.