Ashton Under Lyne leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher premium will be due. Flat owners in Ashton Under Lyne will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain situations you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Ashton Under Lyne,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ashton Under Lyne valuers.
Joseph owned a 2 bedroom apartment in Ashton Under Lyne on the market with a lease of fraction over 61 years outstanding. Joseph on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert advice and secured satisfactory deal informally and readily saleable.
Ms Freya King moved into a garden apartment in Ashton Under Lyne in April 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Ashton Under Lyne with 100 year plus lease were valued about £218,000. The mid-range amount of ground rent was £45 billed per annum. The lease termination date was on 7 March 2089. Considering the 63 years unexpired we estimated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including expenses.
Last February we were called by Mr and Mrs. F Nguyen , who owned a ground floor flat in Ashton Under Lyne in June 1996. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Ashton Under Lyne with a long lease were worth £265,000. The mid-range ground rent payable was £50 billed quarterly. The lease ended in 2100. Taking into account 74 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.