With a long leasehold property in Ambleside, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Leasehold owners in Ambleside with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has below eighty years remaining, under the current Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Ambleside valuers.
Trailing protracted discussions with the landlord of her ground floor flat in Ambleside, Freya initiated the lease extension process as the 80 year threshold was quickly nearing. The transaction was concluded in June 2015. The freeholder’s charges were kept to an absolute minimum.
Last year we were e-mailed by Mr Tommy Phillips , who owned a purpose-built flat in Ambleside in August 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable flats in Ambleside with an extended lease were valued around £216,000. The mid-range ground rent payable was £60 invoiced per annum. The lease elapsed on 19 April 2083. Given that there were 58 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus legals.
Dr Harvey Parker took over the lease of a recently refurbished flat in Ambleside in March 1995. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Comparable premises in Ambleside with an extended lease were in the region of £205,000. The average ground rent payable was £50 invoiced yearly. The lease terminated on 25 May 2103. Having 78 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.