The market value of a leasehold property in Ashton Under Lyne is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years to run so that formalities can be concluded ahead of the eighty year cut off point. Current legislation entitles Ashton Under Lyne qualifying lessees to an additional term of 90 years in addition to the existing term, at a notional rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Ashton Under Lyne with in excess of one hundred years remaining 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Ashton Under Lyne can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ashton Under Lyne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Lewis, came very near to the eighty-year mark with the lease on his purpose- built flat in Ashton Under Lyne. In buying his home 18 years ago, the length of the lease was of minimal importance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Lewis was able to extend his lease just under the wire in September. Lewis and the landlord in the end settled on the final figure of £5,500 . If the lease had dipped lower than eighty years, the amount would have become more exhorbitant by a minimum £1,000.
In 2014 we were approached by Mrs S Rose who, having took over the lease of a ground floor flat in Ashton Under Lyne in March 2012. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Ashton Under Lyne with a long lease were worth £210,600. The average amount of ground rent was £45 billed quarterly. The lease elapsed in 2087. Considering the 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus costs.
Last Spring we were contacted by Mr and Mrs. A Gómez , who took over the lease of a newly refurbished apartment in Ashton Under Lyne in September 2010. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar properties in Ashton Under Lyne with a long lease were worth £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed in 2098. Having 73 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.