The market 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 escalate materialy once the remaining term is less than eighty years
Leasehold premises in High Wycombe with more than one hundred years outstanding 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in High Wycombe,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with High Wycombe valuers.
Charlie was the the leasehold proprietor of a high value flat in High Wycombe being marketed with a lease of fraction over sixty years unexpired. Charlie informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Charlie to exercise his statutory right. Charlie procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
In 2009 we were approached by Mr and Mrs. U Girard who, having bought a basement flat in High Wycombe in June 2011. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative flats in High Wycombe with an extended lease were worth £210,000. The average amount of ground rent was £50 invoiced yearly. The lease concluded on 15 November 2106. Considering the 80 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
In 2014 we were approached by Mr T Parker who, having was assigned a lease of a one bedroom flat in High Wycombe in September 2011. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable flats in High Wycombe with a long lease were valued around £275,000. The mid-range amount of ground rent was £45 collected yearly. The lease terminated on 3 May 2095. Having 69 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.