The closer a domestic lease in Ashton Under Lyne nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Ashton Under Lyne will qualify for this right; that being said a conveyancer will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Ashton Under Lyne with over 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 buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| 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. |
The conveyancers that we work with undertake 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.
Benjamin was the the leasehold owner of a high value flat in Ashton Under Lyne being sold with a lease of just over 59 years unexpired. Benjamin informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Dr Charlotte Bell bought a one bedroom apartment in Ashton Under Lyne in July 1999. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative homes in Ashton Under Lyne with 100 year plus lease were valued about £260,000. The mid-range ground rent payable was £50 invoiced per annum. The lease expiry date was on 27 September 2098. Given that there were 72 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
In 2011 we were contacted by Dr Luca Phillips who, having acquired a garden flat in Ashton Under Lyne in July 1995. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical homes in Ashton Under Lyne with a long lease were worth £256,600. The average ground rent payable was £60 collected per annum. The lease elapsed on 21 October 2078. Taking into account 52 years left we approximated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 not including costs.