Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Ashton. Clearly, the length of lease left shortens over time. This is often ignored and only becomes a problem when the flat or house needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Ashton have the legal entitlement to extend the lease for an additional 90 years under statute. Please give careful attention before putting off your Ashton lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold properties in Ashton with more than 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Lease extensions in Ashton can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 a wealth of experience procuring Ashton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy owned a 2 bedroom flat in Ashton on the market with a lease of a little over 61 years remaining. Teddy informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Teddy to exercise his statutory right. Teddy procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last month we were phoned by Mr and Mrs. M Garcia , who purchased a garden flat in Ashton in October 2008. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable properties in Ashton with a long lease were in the region of £261,600. The average ground rent payable was £60 invoiced quarterly. The lease termination date was in 2078. Taking into account 52 years remaining we estimated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus costs.
In 2014 we were e-mailed by Mrs Isabel François who, having completed a garden flat in Ashton in January 2007. The question was if we could estimate the premium would be to extend the lease by ninety years. Comparable properties in Ashton with an extended lease were worth £218,000. The mid-range ground rent payable was £45 invoiced monthly. The lease concluded in 2089. Taking into account 63 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus costs.