The market value of a leasehold property in Ambleside depends on how long the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised ahead of the eighty year threshold. Current legislation entitles Ambleside qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Ambleside 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Ambleside leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the freeholder of her leasehold flat in Ambleside, Naomi started the lease extension process just as her lease was coming close to the crucial 80-year deadline. The legal work completed in January 2005. The landlord’s fees were kept to an absolute minimum.
In 2011 we were e-mailed by Mr and Mrs. R Sánchez who, having completed a basement flat in Ambleside in May 2001. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar properties in Ambleside with an extended lease were valued around £300,000. The mid-range ground rent payable was £50 billed monthly. The lease terminated in 2101. Given that there were 75 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2012 we were called by Mr and Mrs. R Bailey who, having moved into a basement apartment in Ambleside in June 2005. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical premises in Ambleside with an extended lease were worth £250,400. The average amount of ground rent was £65 billed per annum. The lease termination date was in 2090. Given that there were 64 years remaining we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of expenses.