The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Ambleside can extend the lease for an additional ninety years under Leasehold Reform legislation. Do think carefully before delaying your Ambleside lease extension. Postponing that expense now simply escalates the price you will eventually have to pay for a lease extension.
Leasehold premises in Ambleside with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Ambleside leasehold, as your property will be more valuable and saleable in relation to the 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.
Sam owned a studio apartment in Ambleside being marketed with a lease of a few days over sixty years left. Sam informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Sam to invoke his statutory right. Sam procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last month we were e-mailed by Mr and Mrs. Y Moreau , who took over the lease of a newly refurbished flat in Ambleside in October 2010. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparative premises in Ambleside with an extended lease were valued around £285,000. The average amount of ground rent was £45 collected monthly. The lease concluded in 2097. Taking into account 71 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.
In 2010 we were contacted by Ms I Rodríguez who, having acquired a first floor flat in Ambleside in March 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparative homes in Ambleside with 100 year plus lease were worth £230,800. The mid-range ground rent payable was £60 invoiced annually. The lease end date was in 2086. Given that there were 60 years outstanding we estimated the premium to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of legals.