Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Ambleside. Clearly, the period of lease left shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Ambleside have the right to extend the lease for an additional ninety years under legislation. Do give due deliberation before delaying your Ambleside lease extension. Holding off that expense now only increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you enhanced control over the value of your Ambleside leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the freeholder of her purpose-built flat in Ambleside, Jennifer initiated the lease extension process as the eighty year threshold was fast approaching. The legal work was concluded in June 2007. The landlord’s fees were negotiated to less than six hundred pounds.
In 2010 we were approached by Dr A Baker who, having acquired a newly refurbished flat in Ambleside in October 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative residencies in Ambleside with 100 year plus lease were in the region of £248,000. The mid-range amount of ground rent was £65 collected yearly. The lease concluded on 4 March 2089. Having 63 years outstanding we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus legals.
Last year we were contacted by Mr Aarav David , who was assigned a lease of a purpose-built flat in Ambleside in November 2007. The question was if we could approximate the premium could be to prolong the lease by ninety years. Similar residencies in Ambleside with an extended lease were in the region of £181,600. The average ground rent payable was £55 collected quarterly. The lease lapsed in 2078. Given that there were 52 years unexpired we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.