The only way is down when it comes to Amble lease terms. Amble properties that have a residual term fewer than eighty years will de-escalate in value even faster, and the cost to extend your lease will go up.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 obtain 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 in-depth market knowledge 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.
Leon was the the leasehold proprietor of a 2 bedroom apartment in Amble on the market with a lease of a little over fifty eight years remaining. Leon on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Leon to invoke his statutory right. Leon procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2010 we were approached by Mr and Mrs. V Adams who, having bought a purpose-built apartment in Amble in May 2007. We are asked if we could approximate the premium would be to extend the lease by 90 years. Similar premises in Amble with an extended lease were valued about £181,600. The average amount of ground rent was £55 billed per annum. The lease terminated on 13 October 2077. Given that there were 52 years outstanding we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of fees.
Last Spring we were called by Mrs Kelsey Cooper , who acquired a basement flat in Amble in April 2009. The question was if we could estimate the price would be for a ninety year extension to my lease. Similar properties in Amble with an extended lease were worth £285,000. The average ground rent payable was £45 invoiced per annum. The lease ran out in 2097. Taking into account 72 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.