Unfortunately that a High Wycombe residential lease is a wasting asset. As the lease term reduces so does the value of the property. 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 nears 85ish years, you need to start considering a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in High Wycombe will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases 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 in excess of 100 years outstanding on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in High Wycombe can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with 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.
Last Christmas John, came dangerously close to the eighty-year mark with the lease on his leasehold flat in High Wycombe. Having bought his flat twenty years previously, the lease term was of no interest. by good luck, he recognised he would soon be paying an escalated premium for Extending the lease. John extended the lease just ahead of time last August. John and the landlord who owned the flat above in the end settled on an amount of £5,000 . If the lease had dropped below 80 years, the price would have become more exhorbitant by a minimum £1,025.
In 2014 we were contacted by Mr and Mrs. J Evans who, having took over the lease of a first floor apartment in High Wycombe in September 2005. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in High Wycombe with 100 year plus lease were valued around £171,800. The average ground rent payable was £55 collected every twelve months. The lease finished in 2076. Considering the 50 years left we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus fees.
Last month we were phoned by Mrs E Carter , who bought a ground floor apartment in High Wycombe in November 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in High Wycombe with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 collected per annum. The lease expired in 2096. Given that there were 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.