With a residential leasehold premises in Ampthill, 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 lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years left. Anyone in Ampthill with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. When a lease has less than 80 years left, under the current Act the freeholder can calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Ampthill with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Lease extensions in Ampthill can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Ampthill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Kai, started to get close to the 80-year threshold with the lease on his first floor flat in Ampthill. In buying his home two decades ago, the length of the lease was of minimal bearing. by good luck, he became aware that he would soon be paying an escalated premium for a lease extension. Kai arranged for a lease extension at the eleventh hour last June. Kai and the freeholder eventually agreed on sum of £6,000 . If the lease had gone below 80 years, the amount would have increased by at least £925.
In 2012 we were called by Mr Seth Ward who, having purchased a newly refurbished apartment in Ampthill in August 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparative homes in Ampthill with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced per annum. The lease ran out in 2103. Having 77 years remaining we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.
Mr and Mrs. A Girard owned a garden apartment in Ampthill in January 2001. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Ampthill with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 collected per annum. The lease ended in 2083. Given that there were 57 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including costs.