The market value of Amble 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 substantially once the remaining term is below than eighty years
Leasehold residencies in Amble with more than 100 years left 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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 Amble can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 procuring Amble lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the freeholder of her first floor flat in Amble, Melissa started the lease extension process as the 80 year deadline was rapidly coming. The transaction was finalised in September 2007. The landlord’s costs were kept to an absolute minimum.
In 2011 we were phoned by Dr Poppy Watson who, having acquired a one bedroom apartment in Amble in September 2004. We are asked if we could estimate the price could be to extend the lease by ninety years. Identical properties in Amble with a long lease were in the region of £208,600. The average ground rent payable was £60 billed quarterly. The lease ran out on 22 May 2083. Given that there were 57 years unexpired we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus fees.
In 2011 we were called by Mr and Mrs. R Davis who, having owned a first floor apartment in Amble in January 2003. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative properties in Amble with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 collected annually. The lease concluded in 2103. Having 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.