Bampton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Bampton tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Bampton you should check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Bampton flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold premises in Bampton with in excess of one hundred years outstanding on the lease are often referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Bampton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her basement flat in Bampton, Rebecca commenced the lease extension process as the 80 year deadline was swiftly approaching. The legal work was concluded in September 2015. The freeholder’s charges were negotiated to a tad over 550 pounds.
Dr V Wilson bought a one bedroom flat in Bampton in May 1998. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in Bampton with a long lease were valued about £260,000. The average amount of ground rent was £50 invoiced per annum. The lease expiry date was on 15 August 2096. Given that there were 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Last Winter we were approach by Dr Dexter Bernard , who completed a one bedroom apartment in Bampton in July 1996. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical residencies in Bampton with 100 year plus lease were in the region of £254,200. The average ground rent payable was £60 billed per annum. The lease concluded in 2076. Considering the 51 years left we approximated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 plus fees.