The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bampton may extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Bampton lease extension. Shelving the costs now simply escalates the premium you will eventually have to pay to extend the lease.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancers that we work with procure Bampton 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.
Off the back of protracted discussions with the freeholder of her studio flat in Bampton, Mollie initiated the lease extension process just as her lease was coming close to the critical 80-year mark. The lease extension completed in August 2010. The freeholder’s costs were negotiated to below 550 pounds.
Last Christmas we were phoned by Mr and Mrs. F Mitchell , who bought a purpose-built apartment in Bampton in June 2004. We are asked if we could approximate the price could be to extend the lease by an additional years. Identical residencies in Bampton with 100 year plus lease were valued about £261,600. The average amount of ground rent was £60 collected annually. The lease expired in 2077. Given that there were 52 years as a residual term we approximated the premium to the landlord to extend the lease to be within £39,000 and £45,000 not including expenses.
Mr Lewis Turner owned a newly refurbished flat in Bampton in August 2012. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar premises in Bampton with an extended lease were worth £218,000. The mid-range ground rent payable was £45 billed every twelve months. The lease expired on 7 November 2088. Given that there were 63 years as a residual term we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus professional charges.