Unfortunately that a Ashton Under Lyne residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Ashton Under Lyne property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Ashton Under Lyne will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| Santander | |
| Skipton Building Society |
The conveyancers that we work with procure Ashton Under Lyne 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.
Last year Cameron, started to get near to the eighty-year threshold with the lease on his studio flat in Ashton Under Lyne. Having purchased his property 19 years ago, the lease term was of no relevance. Fortunately, he realised he needed to take steps soon on Extending the lease. Cameron extended the lease at the eleventh hour in January. Cameron and the freeholder subsequently agreed on a premium of £5,000 . If he had missed the deadline, the premium would have gone up by a minimum £1,125.
Last Summer we were contacted by Mr and Mrs. T Sánchez , who purchased a ground floor flat in Ashton Under Lyne in September 2007. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative premises in Ashton Under Lyne with a long lease were valued around £176,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease came to a finish on 2 July 2082. Given that there were 56 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including fees.
Last Autumn we were contacted by Mr B Patel , who purchased a ground floor apartment in Ashton Under Lyne in February 2009. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical flats in Ashton Under Lyne with a long lease were worth £242,600. The average ground rent payable was £45 collected per annum. The lease lapsed on 8 July 2093. Given that there were 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including professional charges.