It’s a harsh certainty that a Ampthill residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Ampthill property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Most flat owners in Ampthill will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Ampthill,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ampthill valuers.
During the course of the last few months Harvey, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Ampthill. Having purchased his flat two decades ago, the lease term was of minimal interest. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. Harvey extended the lease at the eleventh hour in September. Harvey and the freeholder eventually settled on a premium of £6,000 . If the lease had slipped to less than 80 years, the premium would have gone up by at least £975.
Mrs Sarah Edwards was assigned a lease of a basement flat in Ampthill in January 2012. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Identical premises in Ampthill with 100 year plus lease were worth £176,200. The average ground rent payable was £65 billed annually. The lease finished on 9 May 2082. Having 56 years unexpired we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of expenses.
In 2012 we were approached by Mr and Mrs. N Bonnet who, having purchased a one bedroom apartment in Ampthill in October 2004. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar flats in Ampthill with a long lease were in the region of £237,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease elapsed in 2093. Taking into account 67 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of costs.