Ampthill residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
Lender | Requirement |
---|---|
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
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. |
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. |
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 |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Ampthill,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ampthill valuers.
Trailing protracted discussions with the landlord of her ground floor flat in Ampthill, Samantha commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The lease extension completed in November 2005. The landlord’s fees were negotiated to a tad over 500 pounds.
Last month we were called by Mr and Mrs. Y Petit , who took over the lease of a one bedroom flat in Ampthill in March 2011. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Ampthill with a long lease were worth £264,000. The mid-range ground rent payable was £60 collected monthly. The lease came to a finish on 23 July 2078. Having 53 years remaining we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 plus costs.
In 2013 we were approached by Mr and Mrs. R Sharif who, having was assigned a lease of a basement apartment in Ampthill in July 2008. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative properties in Ampthill with 100 year plus lease were worth £220,400. The mid-range amount of ground rent was £45 invoiced annually. The lease ran out on 28 February 2089. Having 64 years left we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of legals.