Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Ashton. Clearly, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Ashton have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. You should give due consideration before delaying your Ashton lease extension. Holding off that expense now simply increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Ashton with in excess of 100 years outstanding on the lease are sometimes 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 service charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Ashton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Max owned a 2 bedroom apartment in Ashton being marketed with a lease of just over 59 years unexpired. Max informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Max to invoke his statutory right. Max obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Mr L Peterson moved into a one bedroom apartment in Ashton in January 1997. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical flats in Ashton with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 invoiced monthly. The lease expired in 2078. Taking into account 53 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of fees.
In 2014 we were phoned by Mr and Mrs. M Díaz who, having moved into a basement apartment in Ashton in May 2010. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Ashton with a long lease were in the region of £220,400. The mid-range ground rent payable was £45 collected annually. The lease came to a finish in 2089. Taking into account 64 years outstanding we calculated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 plus professional charges.