The 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 substantially once the remaining term is less than eighty years
Leasehold residencies in Long Ashton with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 lawyer we work with provide it.
In the wake of 9 months of unsuccessful negotiations with the landlord of her purpose-built flat in Long Ashton, Laura commenced the lease extension process as the 80 year mark was rapidly approaching. The lease extension completed in July 2012. The landlord’s fees were kept to an absolute minimum.
Mrs G López took over the lease of a studio apartment in Long Ashton in October 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Long Ashton with 100 year plus lease were worth £191,000. The mid-range ground rent payable was £65 billed per annum. The lease ended on 14 January 2084. Given that there were 58 years as a residual term we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including costs.
Dr Luke Davies moved into a garden apartment in Long Ashton in October 2000. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar premises in Long Ashton with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 billed yearly. The lease lapsed on 28 July 2095. Having 69 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.