With a long leasehold premises in Ashton Under Lyne, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Anyone in Ashton Under Lyne with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has under 80 years left, under the relevant statute the freeholder is entitled to calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Ashton Under Lyne with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you enhanced 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 decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her one bedroom flat in Ashton Under Lyne, Ashleigh initiated the lease extension process just as her lease was approaching the all-important 80-year mark. The lease extension was concluded in August 2011. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were called by Mr David Parker who, having completed a basement flat in Ashton Under Lyne in November 1997. The question was if we could estimate the premium could be for a ninety year extension to my lease. Similar flats in Ashton Under Lyne with an extended lease were valued around £166,400. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish in 2079. Taking into account 54 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.
In 2014 we were e-mailed by Mr S Fournier who, having took over the lease of a ground floor flat in Ashton Under Lyne in August 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Ashton Under Lyne with a long lease were in the region of £227,800. The mid-range ground rent payable was £45 collected annually. The lease concluded on 14 July 2090. Taking into account 65 years left we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.