Amersham leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Amersham will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some cases you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Amersham with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Retaining our service gives you increased control over the value of your Amersham leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Tommy was the the leasehold proprietor of a conversion apartment in Amersham on the market with a lease of just over fifty eight years remaining. Tommy on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Mr K Allen acquired a one bedroom apartment in Amersham in April 2000. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar premises in Amersham with an extended lease were worth £280,000. The average amount of ground rent was £55 collected per annum. The lease expired on 26 May 2103. Considering the 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.
Last Christmas we were contacted by Mrs Y François , who took over the lease of a one bedroom apartment in Amersham in September 1998. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Similar premises in Amersham with 100 year plus lease were in the region of £186,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease finished in 2083. Considering the 58 years remaining we approximated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 not including costs.