The value of High Wycombe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is less than 80 years
Leasehold properties in High Wycombe with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 High Wycombe can be a difficult process. We recommend you obtain guidance 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 procuring High Wycombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Stanley, came perilously near to the 80-year mark with the lease on his ground floor flat in High Wycombe. Having bought his home 19 years previously, the length of the lease was of no interest. Thankfully, he realised he needed to take steps soon on Extending the lease. Stanley arranged for a lease extension just in the nick of time in March. Stanley and the landlord who owned the flat above eventually settled on a premium of £6,000 . If he not met the deadline, the figure would have become more costly by a minimum £925.
Last Spring we were approach by Mr and Mrs. F Wood , who completed a studio flat in High Wycombe in August 2011. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative flats in High Wycombe with a long lease were in the region of £206,200. The mid-range ground rent payable was £55 invoiced per annum. The lease came to a finish on 26 January 2082. Having 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.
Last month we were e-mailed by Mrs Chelsea Sharif , who acquired a one bedroom apartment in High Wycombe in May 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in High Wycombe with 100 year plus lease were worth £300,000. The average ground rent payable was £50 collected quarterly. The lease ended on 12 October 2102. Taking into account 76 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.