The market value of Ambleside 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 increase substantially once the unexpired lease term is less than eighty years
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Ambleside,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ambleside valuers.
During the course of the last few months Jacob, started to get near to the eighty-year threshold with the lease on his garden flat in Ambleside. In buying his home 19 years previously, the length of the lease was of little importance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Jacob extended the lease just in the nick of time last January. Jacob and the landlord who owned the flat above ultimately settled on sum of £5,000 . If the lease had slipped to less than 80 years, the sum would have become more costly by a minimum £850.
Last year we were e-mailed by Dr Ella Brown , who owned a one bedroom apartment in Ambleside in September 2007. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Ambleside with an extended lease were worth £257,800. The average ground rent payable was £65 collected quarterly. The lease terminated on 8 October 2090. Having 65 years as a residual term we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including costs.
Ms O Petit purchased a ground floor apartment in Ambleside in July 1999. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Ambleside with a long lease were valued about £191,400. The mid-range ground rent payable was £55 invoiced quarterly. The lease elapsed in 2079. Given that there were 54 years unexpired we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 plus fees.