The market value of a leasehold property in Amersham is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded well before the 80 year threshold. Current legislation enables Amersham qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Amersham can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Amersham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aiden owned a studio flat in Amersham on the market with a lease of just over 61 years unexpired. Aiden on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Mrs K Rose moved into a studio flat in Amersham in March 2002. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative residencies in Amersham with 100 year plus lease were worth £203,200. The average amount of ground rent was £65 billed quarterly. The lease terminated on 11 August 2087. Given that there were 61 years remaining we calculated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including fees.
Last Summer we were contacted by Dr Sam Wilson , who owned a first floor apartment in Amersham in August 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Amersham with a long lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ran out in 2098. Having 72 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.