On the balance of probabilities if you own a flat in Ashton you actually own a long leasehold interest over your property
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 increased control over the value of your Ashton leasehold, as your property will be more valuable and marketable in terms of lease length should you want 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.
Last Christmas Jayden, started to get close to the 80-year mark with the lease on his leasehold flat in Ashton. In buying his property two decades ago, the length of the lease was of no importance. Fortunately, he became aware that he needed to take action soon on a lease extension. Jayden extended the lease just under the wire in March. Jayden and the freeholder via the managing agents subsequently agreed on a premium of £5,000 . If the lease had gone below 80 years, the premium would have increased by a minimum £1,000.
Last November we were e-mailed by Dr F Cox , who took over the lease of a one bedroom flat in Ashton in January 2000. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar flats in Ashton with an extended lease were in the region of £232,800. The average amount of ground rent was £45 invoiced yearly. The lease ran out on 23 March 2091. Given that there were 65 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Last Spring we were approach by Mr and Mrs. K Moreau , who purchased a studio apartment in Ashton in February 2011. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Ashton with a long lease were in the region of £275,000. The average amount of ground rent was £55 billed quarterly. The lease terminated on 23 April 2102. Having 76 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.