There is no doubt about it a leasehold property in Bampton is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Bampton will qualify for this right; nevertheless a conveyancer will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Bampton with more than 100 years unexpired 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Santander | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Bampton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bampton valuers.
Noah owned a conversion apartment in Bampton being marketed with a lease of just over 61 years unexpired. Noah on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Noah to exercise his statutory right. Noah obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2013 we were approached by Mr and Mrs. T Nguyen who, having owned a one bedroom flat in Bampton in March 1997. The dilemma was 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. Similar properties in Bampton with an extended lease were worth £208,200. The average ground rent payable was £65 billed per annum. The lease expired on 23 July 2087. Taking into account 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus legals.
Dr E Cook was assigned a lease of a purpose-built flat in Bampton in September 2008. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical homes in Bampton with an extended lease were valued about £260,000. The average amount of ground rent was £50 collected monthly. The lease terminated on 2 November 2098. Considering the 72 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.