Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Ashton Under Lyne. Clearly, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the flat or house has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Ashton Under Lyne have the legal entitlement to extend the lease for a further ninety years under legislation. You should give due consideration before putting off your Ashton Under Lyne lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancers that we work with handle 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.
Half a year ago Toby, came dangerously near to the 80-year mark with the lease on his first floor flat in Ashton Under Lyne. Having bought his home 18 years previously, the lease term was of minimal interest. Luckily, he realised he needed to take action soon on a lease extension. Toby arranged for a lease extension at the eleventh hour in May. Toby and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If the lease had descended below 80 years, the premium would have escalated by at least £1,125.
In 2009 we were contacted by Dr V Norbert who, having owned a first floor flat in Ashton Under Lyne in March 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar residencies in Ashton Under Lyne with a long lease were valued about £245,000. The average amount of ground rent was £50 collected quarterly. The lease concluded in 2094. Having 68 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Last year we were approach by Mrs A Martin , who moved into a one bedroom apartment in Ashton Under Lyne in November 2007. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Similar premises in Ashton Under Lyne with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease ended in 2105. Considering the 79 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.