When it comes to domestic leasehold property in Ambleside, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years left. Leasehold owners in Ambleside with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has under 80 years remaining, under the relevant Act the freeholder can calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Ambleside with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| Yorkshire 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. |
Retaining our service gives you enhanced control over the value of your Ambleside leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Toby was the the leasehold owner of a 2 bedroom flat in Ambleside on the market with a lease of a little over 72 years unexpired. Toby on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Toby to invoke his statutory right. Toby procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2013 we were called by Mrs O Rose who, having purchased a recently refurbished apartment in Ambleside in March 2006. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar properties in Ambleside with 100 year plus lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed quarterly. The lease ended on 12 May 2083. Having 59 years left we estimated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 plus legals.
In 2009 we were contacted by Mr and Mrs. L Lefebvre who, having acquired a garden apartment in Ambleside in September 1999. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Ambleside with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease expired on 22 September 2103. Having 79 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.