Long Ashton residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Long Ashton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide 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 Autumn Harrison, came perilously near to the eighty-year threshold with the lease on his leasehold flat in Long Ashton. In buying his flat 19 years previously, the unexpired term was of little importance. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Harrison extended the lease at the eleventh hour in March. Harrison and the landlord eventually agreed on the final figure of £5,500 . If he not met the deadline, the price would have gone up by a minimum £975.
Last February we were e-mailed by Mrs H Harris , who owned a ground floor flat in Long Ashton in April 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable premises in Long Ashton with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 billed yearly. The lease came to a finish in 2096. Considering the 70 years unexpired we calculated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 exclusive of costs.
Mr and Mrs. C Garcia owned a purpose-built flat in Long Ashton in October 1998. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical flats in Long Ashton with a long lease were valued around £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease finished in 2076. Given that there were 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including costs.