The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Amersham can extend the lease for an additional ninety years in accordance with statute. Do give careful consideration before delaying your Amersham lease extension. Shelving the costs now simply increases the price you will ultimately have to pay for a lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you better control over the value of your Amersham leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the freeholder of her two bedroom apartment in Amersham, Imogen started the lease extension process just as the lease was nearing the critical 80-year threshold. The transaction was finalised in July 2008. The freeholder’s charges were restricted to approximately 700 GBP.
Last month we were phoned by Mr Aiden Howard , who bought a one bedroom flat in Amersham in July 2001. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Identical residencies in Amersham with an extended lease were worth £235,200. The average ground rent payable was £45 invoiced annually. The lease came to a finish on 13 January 2091. Having 66 years left we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
In 2010 we were called by Mr and Mrs. C Norbert who, having moved into a ground floor flat in Amersham in July 2000. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar properties in Amersham with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £55 collected yearly. The lease ran out in 2102. Considering the 77 years as a residual term we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.