The re-sale value of a leasehold property in Ashton depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that a lease extension can be concluded ahead of the 80 year mark. Leasehold Reform legislation enables Ashton qualifying lessees to an additional term of ninety years over and above the existing term, at a notional rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Ashton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ashton valuers.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her garden apartment in Ashton, Ashleigh started the lease extension process just as her lease was approaching the critical 80-year deadline. The legal work was concluded in October 2010. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were e-mailed by Mr H Cooper who, having acquired a recently refurbished apartment in Ashton in May 1995. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Ashton with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 collected annually. The lease elapsed on 24 February 2085. Taking into account 59 years remaining we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus costs.
Last September we were contacted by Mr and Mrs. G King , who was assigned a lease of a garden apartment in Ashton in April 2011. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Similar properties in Ashton with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease ended in 2096. Having 70 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.