It’s a harsh certainty that a Amersham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Amersham property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining falls under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Amersham will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Amersham with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
Regardless of whether you are a tenant or a landlord in Amersham,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Amersham valuers.
Adam owned a conversion flat in Amersham being sold with a lease of fraction over sixty years remaining. Adam on an informal basis approached his freeholder being a well known Bristol-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 subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Adam to invoke his statutory right. Adam procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Dr Emma Ali moved into a recently refurbished apartment in Amersham in May 2003. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative premises in Amersham with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease lapsed in 2075. Taking into account 51 years outstanding we approximated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including costs.
Dr Thomas Bennett was assigned a lease of a purpose-built flat in Amersham in April 2007. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Amersham with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease ran out in 2086. Having 62 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including fees.