With a long leasehold property in Ashton, you are actually purchasing a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years left. Residents in Ashton with a lease nearing 81 years left should seriously think of extending it sooner rather than later. Once the lease term has below 80 years remaining, under the current legislation the freeholder can calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Using our service gives you better control over the value of your Ashton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her ground floor flat in Ashton, Phoebe initiated the lease extension process as the 80 year deadline was quickly coming. The transaction was finalised in November 2011. The landlord’s fees were negotiated to less than 450 pounds.
Last month we were phoned by Dr I Cooper , who purchased a garden flat in Ashton in June 1999. The question was if we could estimate the price would be to extend the lease by an additional years. Similar flats in Ashton with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease expired on 17 October 2094. Given that there were 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Mr and Mrs. S Miller took over the lease of a purpose-built flat in Ashton in June 2010. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Ashton with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £55 billed per annum. The lease expired in 2105. Having 79 years unexpired we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.