It’s a harsh certainty that a Amersham residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Amersham property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Amersham will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Amersham with over one hundred years remaining on the lease are often regarded as a ‘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 upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Skipton Building Society |
Regardless of whether you are a tenant or a freeholder in Amersham,the lease extension solicitors that we work with will always be willing 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.
Andrew owned a 2 bedroom apartment in Amersham being sold with a lease of a few days over 59 years unexpired. Andrew informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Andrew to exercise his statutory right. Andrew procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last year we were contacted by Mr and Mrs. M Ricardo , who took over the lease of a studio apartment in Amersham in July 1999. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable homes in Amersham with a long lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expired in 2101. Taking into account 75 years left we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
Mr and Mrs. P Thompson moved into a ground floor flat in Amersham in October 1997. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Similar residencies in Amersham with a long lease were valued around £168,800. The average amount of ground rent was £60 collected quarterly. The lease finished in 2081. Given that there were 55 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including legals.