Ampthill leases on domestic properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher premium will be due. Flat owners in Ampthill will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Ampthill with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Ampthill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Omar, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Ampthill. In buying his flat twenty years previously, the unexpired term was of little interest. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Omar extended the lease just under the wire in May. Omar and the landlord subsequently agreed on sum of £5,500 . If the lease had fallen below 80 years, the figure would have escalated by at least £1,150.
In 2010 we were called by Dr Morgan Collins who, having bought a newly refurbished apartment in Ampthill in September 2007. The question was if we could approximate the price would be to extend the lease by a further 90 years. Comparative properties in Ampthill with a long lease were valued around £270,000. The average amount of ground rent was £55 billed yearly. The lease lapsed on 7 June 2100. Given that there were 75 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
Mr Y Hill purchased a one bedroom flat in Ampthill in February 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparable premises in Ampthill with an extended lease were in the region of £168,800. The mid-range ground rent payable was £60 collected yearly. The lease lapsed on 6 October 2080. Considering the 55 years unexpired we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.