When it comes to domestic leasehold premises in Ashton Under Lyne, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years left. Anyone in Ashton Under Lyne with a lease approaching 81 years remaining should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the current Act the landlord can calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Ashton Under Lyne with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date 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 |
| Yorkshire Building Society | 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. |
Engaging our service gives you increased control over the value of your Ashton Under Lyne leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the landlord of her purpose-built flat in Ashton Under Lyne, Rebecca commenced the lease extension process as the 80 year deadline was fast nearing. The transaction completed in June 2011. The landlord’s charges were kept to an absolute minimum.
In 2009 we were approached by Mr and Mrs. Y Roberts who, having took over the lease of a basement apartment in Ashton Under Lyne in May 2000. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable residencies in Ashton Under Lyne with an extended lease were valued around £183,600. The mid-range amount of ground rent was £65 billed yearly. The lease terminated on 15 September 2083. Given that there were 57 years outstanding we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
In 2009 we were contacted by Ms Olivia Rogers who, having moved into a one bedroom apartment in Ashton Under Lyne in March 1998. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Similar premises in Ashton Under Lyne with an extended lease were worth £245,000. The average amount of ground rent was £50 collected annually. The lease came to a finish on 3 October 2094. Taking into account 68 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.