Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ashton Under Lyne. Inevitably, the period of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Ashton Under Lyne have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Do give due deliberation before putting off your Ashton Under Lyne lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| The Mortgage Works |
Retaining our service will provide 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Daniel was the the leasehold owner of a high value apartment in Ashton Under Lyne being sold with a lease of just over 59 years unexpired. Daniel on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
In 2010 we were approached by Mr and Mrs. T Gómez who, having owned a basement apartment in Ashton Under Lyne in May 2010. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Similar homes in Ashton Under Lyne with an extended lease were worth £200,800. The average ground rent payable was £65 billed quarterly. The lease terminated in 2086. Taking into account 60 years outstanding we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of expenses.
Last May we were approach by Ms I Girard , who purchased a studio apartment in Ashton Under Lyne in November 1997. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical homes in Ashton Under Lyne with a long lease were valued around £255,000. The mid-range ground rent payable was £50 billed monthly. The lease expiry date was on 15 September 2097. Taking into account 71 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.