Amesbury leases on residential properties are gradually losing value. Where your lease has in the region of ninety years remaining, 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 current lease drops under eighty years - otherwise a higher amount will be due. Flat owners in Amesbury will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Amesbury with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Amesbury can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 in-depth market knowledge dealing with Amesbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Austin was the the leasehold owner of a conversion flat in Amesbury on the market with a lease of a few days over fifty eight years left. Austin informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Austin to exercise his statutory right. Austin procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Dr P Mercier purchased a one bedroom flat in Amesbury in June 2011. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparative homes in Amesbury with an extended lease were valued around £205,000. The average ground rent payable was £50 invoiced per annum. The lease ended in 2104. Having 79 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Last September we were e-mailed by Dr O Martin , who completed a garden apartment in Amesbury in February 2004. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative premises in Amesbury with an extended lease were worth £275,000. The average ground rent payable was £65 billed every twelve months. The lease ended in 2093. Taking into account 68 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.