For anyone whose Amesbury flat is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold residencies in Amesbury with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Yorkshire Building Society |
The conveyancers that we work with handle Amesbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Kyle, started to get near to the eighty-year mark with the lease on his one bedroom flat in Amesbury. In buying his home two decades ago, the length of the lease was of no interest. Thankfully, he realised he would soon be paying way over the odds for Extending the lease. Kyle was able to extend his lease just under the wire last July. Kyle and the landlord ultimately agreed on a premium of £5,500 . If he not met the deadline, the sum would have escalated by a minimum £1,100.
In 2012 we were e-mailed by Dr Finn Hill who, having moved into a basement flat in Amesbury in September 2010. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Identical flats in Amesbury with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 billed quarterly. The lease terminated in 2101. Considering the 75 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
Last Summer we were contacted by Dr Max Gunderson , who completed a basement apartment in Amesbury in July 1995. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Amesbury with an extended lease were in the region of £250,400. The average ground rent payable was £65 invoiced annually. The lease ended on 15 May 2090. Taking into account 64 years remaining we calculated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of expenses.