Main reasons to commence your High Wycombe lease extension

Main reasons to commence your High Wycombe lease extension today:

Increase your lease and increase your High Wycombe property value

High Wycombe residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.

High Wycombe property with a lease extension has roughly the same value as a freehold

Leasehold properties in High Wycombe with in excess of 100 years outstanding 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to grant a mortgage with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by banks has increased. In the past lenders were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in High Wycombe lease extensions?

Retaining our service gives you increased control over the value of your High Wycombe leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

High Wycombe Lease Extension Case Studies:

Kai, High Wycombe, Buckinghamshire

In recent months Kai, came precariously near to the 80-year threshold with the lease on his one bedroom apartment in High Wycombe. Having bought his home two decades ago, the lease term was of minimal relevance. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Kai was able to extend his lease just ahead of time in September. Kai and the freeholder via the management company ultimately agreed on a premium of £6,000 . If the lease had slipped lower than 80 years, the amount would have escalated by at least £850.

High Wycombe case:

Last year we were called by Dr J González , who was assigned a lease of a basement flat in High Wycombe in October 2006. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical residencies in High Wycombe with 100 year plus lease were valued about £208,600. The average ground rent payable was £60 invoiced every twelve months. The lease finished in 2083. Considering the 57 years unexpired we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.

High Wycombe case:

Mr and Mrs. S Torres completed a purpose-built apartment in High Wycombe in May 2004. The question was if we could approximate the price could be to prolong the lease by 90 years. Identical homes in High Wycombe with a long lease were valued about £200,000. The average ground rent payable was £50 billed every twelve months. The lease concluded on 7 February 2103. Considering the 77 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.