Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Ampthill. Inevitably, the period of lease left reduces as time goes by. This may pass by relatively unnoticed when the residence has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Ampthill have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Do give due deliberation before delaying your Ampthill lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in Ampthill with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
Lease extensions in Ampthill can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 in-depth market knowledge procuring Ampthill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago William, started to get close to the 80-year mark with the lease on his first floor apartment in Ampthill. Having purchased his home twenty years ago, the lease term was of little relevance. Fortunately, he recognised he needed to take steps soon on a lease extension. William was able to extend his lease just in the nick of time last July. William and the landlord eventually settled on sum of £5,000 . If the lease had dropped below eighty years, the figure would have increased by at least £900.
In 2014 we were approached by Dr Muhammad Lefebvre who, having moved into a ground floor apartment in Ampthill in October 2012. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Ampthill with a long lease were in the region of £275,000. The average amount of ground rent was £55 collected per annum. The lease terminated on 23 April 2101. Considering the 77 years remaining we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.
In 2012 we were called by Dr L Flores who, having owned a one bedroom flat in Ampthill in June 2004. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Identical homes in Ampthill with an extended lease were valued around £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease ended on 22 October 2081. Given that there were 57 years remaining we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.