It’s an underpublicised truth that a Bampton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Bampton property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term drops under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Bampton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Bampton with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| 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 |
Engaging our service gives you enhanced control over the value of your Bampton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her garden flat in Bampton, Anna commenced the lease extension process just as the lease was approaching the crucial 80-year threshold. The legal work completed in February 2007. The landlord’s fees were kept to an absolute minimum.
Last year we were e-mailed by Mr and Mrs. P Garcia , who acquired a ground floor flat in Bampton in November 1998. We are asked if we could approximate the price would be to prolong the lease by an additional years. Similar flats in Bampton with a long lease were worth £280,000. The average amount of ground rent was £55 collected per annum. The lease finished on 28 July 2104. Given that there were 78 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.
In 2010 we were e-mailed by Mr S David who, having owned a basement flat in Bampton in June 2000. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative properties in Bampton with an extended lease were valued about £191,000. The average amount of ground rent was £65 billed monthly. The lease elapsed in 2084. Having 58 years outstanding we estimated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 plus expenses.