Unfortunately that a High Wycombe residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the High Wycombe property prices.Once your lease gets to 85ish years, you should start thinking about 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 slips lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in High Wycombe will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in High Wycombe with over one hundred years unexpired 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Using our service gives you better control over the value of your High Wycombe leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Theo, came dangerously near to the eighty-year threshold with the lease on his basement apartment in High Wycombe. In buying his property two decades ago, the length of the lease was of little concern. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Theo was able to extend his lease just under the wire in September. Theo and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If the lease had dipped below 80 years, the price would have gone up by a minimum £850.
Last Winter we were phoned by Dr Elijah Garcia , who acquired a purpose-built apartment in High Wycombe in May 1996. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Identical premises in High Wycombe with an extended lease were in the region of £174,200. The average amount of ground rent was £55 billed yearly. The lease elapsed on 14 September 2076. Having 51 years remaining we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.
Last year we were contacted by Mr A Clarke , who moved into a one bedroom flat in High Wycombe in January 2003. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar flats in High Wycombe with a long lease were worth £285,000. The average amount of ground rent was £45 billed quarterly. The lease came to a finish on 12 August 2096. Considering the 71 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.