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 a lease extension can increase materialy once the remaining term is below than eighty years
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in High Wycombe,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with High Wycombe valuers.
16 months ago Ibrahim, started to get near to the 80-year threshold with the lease on his ground floor apartment in High Wycombe. In buying his property 18 years previously, the length of the lease was of minimal concern. Luckily, he became aware that he needed to take steps soon on a lease extension. Ibrahim extended the lease at the eleventh hour in April. Ibrahim and the freeholder in the end settled on a premium of £5,000 . If the lease had slipped to less than 80 years, the price would have become more exhorbitant by a minimum £850.
Last Christmas we were e-mailed by Mr Alfie Hill , who completed a one bedroom apartment in High Wycombe in March 2002. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical premises in High Wycombe with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 collected monthly. The lease lapsed in 2105. Given that there were 79 years left we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Dr C David owned a newly refurbished flat in High Wycombe in November 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in High Wycombe with a long lease were in the region of £275,000. The mid-range ground rent payable was £65 billed annually. The lease lapsed in 2094. Considering the 68 years left we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.