Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Ashton Under Lyne. Inevitably, the term of lease left reduces over time. This may pass by relatively unnoticed when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Ashton Under Lyne have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Ashton Under Lyne lease extension. Holding off that expense now only increases the price you will ultimately have to pay to extend your lease
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake 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.
Owen was the the leasehold proprietor of a high value apartment in Ashton Under Lyne on the market with a lease of fraction over fifty eight years left. Owen on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Owen to exercise his statutory right. Owen procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last Summer we were approach by Mr and Mrs. H Dupont , who took over the lease of a ground floor flat in Ashton Under Lyne in September 2001. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Similar flats in Ashton Under Lyne with 100 year plus lease were valued about £227,800. The average amount of ground rent was £45 billed yearly. The lease ran out on 5 July 2091. Given that there were 65 years as a residual term we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
Mr and Mrs. D Howard owned a one bedroom apartment in Ashton Under Lyne in September 2009. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Ashton Under Lyne with a long lease were valued around £275,000. The mid-range ground rent payable was £55 billed yearly. The lease came to a finish in 2102. Having 76 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.