Amersham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Amersham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Amersham you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Amersham leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Amersham,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 experience and the close ties they enjoy with Amersham valuers.
In the wake of 9 months of lengthy negotiations with the landlord of her first floor apartment in Amersham, Emily started the lease extension process as the eighty year mark was rapidly nearing. The lease extension completed in August 2006. The landlord’s charges were kept to an absolute minimum.
Mrs Chantelle Campbell was assigned a lease of a newly refurbished apartment in Amersham in August 1999. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Amersham with a long lease were worth £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease concluded in 2083. Considering the 57 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.
In 2014 we were contacted by Mr and Mrs. F Collins who, having completed a first floor flat in Amersham in June 2001. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparative residencies in Amersham with a long lease were in the region of £245,000. The average ground rent payable was £50 collected annually. The lease expiry date was in 2094. Considering the 68 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.