Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Ampthill. Clearly, the term of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Ampthill have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. You should give due attention before putting off your Ampthill lease extension. Putting off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold properties in Ampthill with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 secure guidance from a conveyancer 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.
Caleb owned a conversion apartment in Ampthill being marketed with a lease of a few days over 61 years unexpired. Caleb on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last Autumn we were called by Mrs Courtney Campbell , who was assigned a lease of a basement apartment in Ampthill in February 2001. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparative homes in Ampthill with an extended lease were valued about £200,800. The mid-range ground rent payable was £65 billed annually. The lease lapsed on 17 August 2086. Having 60 years unexpired we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 plus professional charges.
Last Spring we were e-mailed by Mr Jack Torres , who moved into a first floor apartment in Ampthill in January 2009. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparative properties in Ampthill with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 collected annually. The lease end date was in 2097. Considering the 71 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.