For those whose Ampthill property is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Ampthill leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Reuben was the the leasehold owner of a high value apartment in Ampthill being sold with a lease of fraction over 72 years left. Reuben on an informal basis spoke with his landlord a well known Manchester-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 rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Reuben to exercise his statutory right. Reuben procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Mr and Mrs. K Baker owned a purpose-built apartment in Ampthill in August 2007. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable residencies in Ampthill with a long lease were worth £183,600. The average amount of ground rent was £65 invoiced monthly. The lease expired on 11 November 2083. Taking into account 57 years remaining we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.
Last Autumn we were approach by Dr V Clark , who completed a ground floor apartment in Ampthill in March 2011. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar flats in Ampthill with 100 year plus lease were valued around £245,000. The mid-range ground rent payable was £45 invoiced monthly. The lease came to a finish in 2094. Having 68 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.