Amersham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Amersham tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Amersham you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Amersham with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Amersham,the lease extension experts 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 Amersham valuers.
Half a year ago Edward, came very close to the eighty-year threshold with the lease on his garden flat in Amersham. Having bought his flat two decades ago, the length of the lease was of little relevance. Luckily, he realised he needed to take action soon on a lease extension. Edward arranged for a lease extension at the eleventh hour last April. Edward and the landlord who owned the flat above subsequently settled on an amount of £5,500 . If the lease had gone below eighty years, the price would have gone up by a minimum £950.
Mr and Mrs. D Anderson acquired a one bedroom apartment in Amersham in February 2005. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar residencies in Amersham with a long lease were worth £220,400. The mid-range ground rent payable was £45 collected yearly. The lease elapsed on 18 November 2090. Taking into account 64 years left we estimated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 not including legals.
Mr Finley Rivera owned a purpose-built apartment in Amersham in September 2005. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable properties in Amersham with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 billed annually. The lease expired on 22 March 2101. Having 75 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.