Amersham leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. Leasehold owners in Amersham will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
The lawyers that we work with procure Amersham 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 conveyancing solicitor we work with provide it.
Michael was the the leasehold owner of a 2 bedroom flat in Amersham on the market with a lease of a little over 72 years unexpired. Michael informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Michael to exercise his statutory right. Michael obtained expert advice and secured satisfactory resolution informally and readily saleable.
Ms Erin Clark moved into a ground floor apartment in Amersham in June 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Amersham with an extended lease were worth £256,600. The mid-range ground rent payable was £60 invoiced per annum. The lease came to a finish on 5 September 2077. Given that there were 52 years remaining we approximated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 not including costs.
Last year we were contacted by Mrs M Thomas , who completed a first floor apartment in Amersham in October 2010. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative properties in Amersham with 100 year plus lease were valued about £218,000. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish in 2088. Taking into account 63 years left we estimated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus fees.