The value of Ampthill leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is below than eighty years
Leasehold premises in Ampthill with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Ampthill,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ampthill valuers.
In 2014 Dexter, came precariously close to the 80-year mark with the lease on his leasehold apartment in Ampthill. In buying his home twenty years ago, the length of the lease was of no importance. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Dexter extended the lease just under the wire last April. Dexter and the freeholder ultimately agreed on the final figure of £6,000 . If he not met the deadline, the sum would have increased by at least £1,075.
Mr U Young took over the lease of a ground floor apartment in Ampthill in November 2010. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Identical premises in Ampthill with a long lease were in the region of £203,200. The mid-range amount of ground rent was £65 billed per annum. The lease came to a finish in 2087. Given that there were 61 years left we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus fees.
Mr Ben Carter moved into a basement apartment in Ampthill in March 1998. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Comparative homes in Ampthill with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 collected quarterly. The lease lapsed in 2098. Considering the 72 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.