High Wycombe leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in High Wycombe will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in High Wycombe can be a difficult process. We recommend you obtain guidance from a lawyer 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 a wealth of experience 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.
14 months ago Aiden, came dangerously close to the eighty-year threshold with the lease on his leasehold apartment in High Wycombe. In buying his flat two decades ago, the lease term was of no interest. Fortunately, he became aware that he would imminently be paying way over the odds for a lease extension. Aiden extended the lease at the eleventh hour in April. Aiden and the freeholder via the managing agents subsequently agreed on a premium of £5,500 . If he had missed the deadline, the amount would have gone up by a minimum £950.
In 2012 we were phoned by Dr F Rodríguez who, having was assigned a lease of a studio flat in High Wycombe in July 2006. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparative residencies in High Wycombe with a long lease were worth £267,600. The mid-range ground rent payable was £65 billed quarterly. The lease concluded on 6 January 2093. Having 67 years remaining we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of legals.
Mr and Mrs. T Rogers completed a studio apartment in High Wycombe in May 2007. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Similar residencies in High Wycombe with an extended lease were worth £206,200. The mid-range ground rent payable was £55 billed yearly. The lease ended on 28 June 2082. Having 56 years left we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of expenses.