The market value of Long Ashton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than 80 years
Leasehold properties in Long Ashton with more than 100 years unexpired 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Santander | |
| The Mortgage Works |
The conveyancers that we work with handle Long Ashton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Half a year ago Joseph, came precariously close to the 80-year mark with the lease on his studio flat in Long Ashton. Having purchased his flat two decades ago, the unexpired term was of no interest. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Joseph extended the lease just ahead of time in June. Joseph and the freeholder via the managing agents in the end settled on the final figure of £5,500 . If the lease had dipped lower than eighty years, the figure would have gone up by at least £950.
Last year we were approach by Mr and Mrs. C King , who completed a studio flat in Long Ashton in November 2007. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Long Ashton with an extended lease were worth £280,000. The average amount of ground rent was £55 collected yearly. The lease finished in 2103. Having 77 years left we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.
Last November we were e-mailed by Mr and Mrs. Y Gunderson , who was assigned a lease of a first floor apartment in Long Ashton in January 2002. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparable flats in Long Ashton with 100 year plus lease were valued around £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease came to a finish in 2083. Given that there were 57 years remaining we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.