Amersham leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher amount will be payable. Leasehold owners in Amersham will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Amersham with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| 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. |
Using our service gives you better control over the value of your Amersham leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the freeholder of her leasehold flat in Amersham, Alicia initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction completed in November 2014. The landlord’s fees were negotiated to under 600 GBP.
In 2014 we were called by Ms Naomi Peterson who, having moved into a first floor flat in Amersham in May 2006. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Amersham with a long lease were valued about £245,000. The mid-range ground rent payable was £50 collected every twelve months. The lease ended in 2094. Considering the 68 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Last month we were called by Mrs Ellie Green , who completed a studio apartment in Amersham in October 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Amersham with an extended lease were valued around £285,000. The mid-range ground rent payable was £55 billed monthly. The lease lapsed in 2105. Taking into account 79 years as a residual term we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.