With a domestic leasehold property in Ashton, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Leasehold owners in Ashton with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has below eighty years remaining, under the relevant statute the freeholder can calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Ashton with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ashton can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 dealing with Ashton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alfie was the the leasehold owner of a 2 bedroom flat in Ashton being marketed with a lease of just over 72 years outstanding. Alfie informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the flat.
Mr and Mrs. L Kelly moved into a first floor flat in Ashton in August 2001. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparable homes in Ashton with 100 year plus lease were valued about £237,600. The average amount of ground rent was £45 billed monthly. The lease concluded on 21 February 2092. Having 67 years left we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus expenses.
Last month we were contacted by Mr and Mrs. G Martínez , who moved into a first floor flat in Ashton in August 2000. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar premises in Ashton with a long lease were in the region of £280,000. The average amount of ground rent was £55 collected monthly. The lease terminated on 26 June 2103. Having 78 years remaining we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.