It’s a harsh truth that a Ashton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Ashton property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining falls under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Ashton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Ashton with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ashton can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Ashton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Liam, started to get near to the 80-year mark with the lease on his leasehold apartment in Ashton. Having bought his home two decades ago, the length of the lease was of little concern. Luckily, he recognised he needed to take steps soon on a lease extension. Liam was able to extend his lease just ahead of time in July. Liam and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If the lease had dropped lower than 80 years, the price would have become more costly by at least £900.
Last Winter we were contacted by Mr Muhammad Campbell , who took over the lease of a one bedroom flat in Ashton in October 1998. The question was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparable premises in Ashton with 100 year plus lease were valued around £173,800. The mid-range amount of ground rent was £65 billed quarterly. The lease ended in 2081. Considering the 55 years unexpired we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including fees.
In 2009 we were phoned by Dr Abbie Ward who, having moved into a first floor flat in Ashton in August 2005. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative flats in Ashton with 100 year plus lease were in the region of £235,200. The average ground rent payable was £45 collected monthly. The lease concluded in 2092. Given that there were 66 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.