Unfortunately that a Ashton Under Lyne residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Ashton Under Lyne property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term slips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Ashton Under Lyne will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold premises in Ashton Under Lyne with in excess of one hundred years left 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Ashton Under Lyne can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ashton Under Lyne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Adam owned a conversion flat in Ashton Under Lyne on the market with a lease of a little over fifty eight years left. Adam informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Adam to exercise his statutory right. Adam procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Spring we were contacted by Mrs Abbie Wilson , who took over the lease of a one bedroom apartment in Ashton Under Lyne in August 2000. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Ashton Under Lyne with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 billed monthly. The lease expired on 6 September 2096. Having 71 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Mr Austin Simon owned a studio apartment in Ashton Under Lyne in June 2009. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical homes in Ashton Under Lyne with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced annually. The lease elapsed on 17 May 2076. Having 51 years remaining we approximated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 plus legals.