With a domestic leasehold property in Ashbourne, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Leasehold owners in Ashbourne with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has less than eighty years outstanding, under the relevant statute the landlord can calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ashbourne can be a difficult process. We recommend you procure guidance from a lawyer 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 Ashbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jason was the the leasehold owner of a 2 bedroom flat in Ashbourne being marketed with a lease of fraction over 61 years left. Jason informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to invoke his statutory right. Jason obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. T Martinez owned a garden flat in Ashbourne in January 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Ashbourne with 100 year plus lease were valued around £171,800. The mid-range ground rent payable was £55 invoiced annually. The lease finished on 23 November 2075. Taking into account 50 years outstanding we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of legals.
Ms F Garcia took over the lease of a ground floor apartment in Ashbourne in July 2011. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar residencies in Ashbourne with a long lease were valued around £280,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease termination date was in 2095. Considering the 70 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.