With a domestic leasehold premises in Ashton Under Lyne, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Leasehold owners in Ashton Under Lyne with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below 80 years remaining, under the current legislation the landlord can calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Ashton Under Lyne leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago James, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Ashton Under Lyne. In buying his home 18 years ago, the length of the lease was of no concern. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. James arranged for a lease extension at the eleventh hour in May. James and the freeholder via the management company in the end agreed on the final figure of £5,000 . If he had missed the deadline, the price would have escalated by a minimum £900.
Mr and Mrs. S Collins purchased a one bedroom apartment in Ashton Under Lyne in May 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Ashton Under Lyne with 100 year plus lease were valued about £255,000. The average amount of ground rent was £50 invoiced every twelve months. The lease concluded in 2095. Taking into account 70 years left we approximated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of costs.
In 2009 we were called by Mr and Mrs. A David who, having purchased a newly refurbished flat in Ashton Under Lyne in November 2003. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Ashton Under Lyne with 100 year plus lease were valued about £246,800. The average ground rent payable was £60 collected annually. The lease came to a finish in 2075. Having 50 years unexpired we estimated the premium to the landlord to extend the lease to be within £44,700 and £51,600 plus legals.