The re-sale value of a leasehold property in Amersham depends on how long the lease has remaining. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that formalities can be finalised prior to the eighty year cut off point. Current legislation enables Amersham qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Amersham can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Amersham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alex was the the leasehold owner of a studio flat in Amersham being sold with a lease of fraction over fifty eight years outstanding. Alex on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alex to invoke his statutory right. Alex obtained expert advice and secured satisfactory resolution informally and sell the flat.
Dr F Kelly acquired a studio apartment in Amersham in February 2004. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable premises in Amersham with a long lease were worth £260,000. The average ground rent payable was £50 collected quarterly. The lease concluded on 19 November 2097. Taking into account 72 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
Ms L Campbell moved into a one bedroom flat in Amersham in April 2001. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable properties in Amersham with a long lease were worth £256,600. The average ground rent payable was £60 invoiced quarterly. The lease expired in 2077. Taking into account 52 years remaining we approximated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 not including expenses.