Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Ashton Under Lyne. Inevitably, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Ashton Under Lyne have the right to extend the lease for an additional 90 years under legislation. Do give due attention before putting off your Ashton Under Lyne lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
Leasehold properties in Ashton Under Lyne with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Ashton Under Lyne,the lease extension lawyers that we work with will always be prepared 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.
Two years ago Sam, started to get near to the 80-year threshold with the lease on his leasehold flat in Ashton Under Lyne. In buying his flat two decades ago, the length of the lease was of minimal significance. Thankfully, he noticed he needed to take action soon on Extending the lease. Sam was able to extend his lease just in the nick of time last January. Sam and the landlord in the end settled on the final figure of £5,000 . If the lease had fallen to less than eighty years, the figure would have become more costly by a minimum £1,150.
Dr Y Wood bought a one bedroom flat in Ashton Under Lyne in March 2006. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical homes in Ashton Under Lyne with an extended lease were in the region of £235,200. The mid-range ground rent payable was £45 billed per annum. The lease expired in 2091. Considering the 66 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.
Last Summer we were contacted by Dr Jordan Davis , who was assigned a lease of a one bedroom flat in Ashton Under Lyne in November 1997. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical residencies in Ashton Under Lyne with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease ended on 19 April 2102. Given that there were 77 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.