Unfortunately that a Ampthill residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Ampthill property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Ampthill will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Ampthill with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ampthill can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor 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 a wealth of experience 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.
In the wake of 6 months of unsuccessful negotiations with the landlord of her purpose-built apartment in Ampthill, Katie commenced the lease extension process as the 80 year mark was rapidly coming. The legal work was finalised in October 2015. The landlord’s costs were kept to an absolute minimum.
Dr Max Scott bought a studio flat in Ampthill in March 2003. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical homes in Ampthill with an extended lease were valued around £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease ran out in 2099. Given that there were 73 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
Ms B Morgan owned a one bedroom flat in Ampthill in April 1996. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative residencies in Ampthill with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 collected every twelve months. The lease expiry date was on 25 April 2079. Given that there were 53 years outstanding we estimated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of legals.