Main reasons to commence your High Wycombe lease extension

Why you should commence your High Wycombe lease extension today:

A High Wycombe lease depreciates with the years remaining on the lease.

With a domestic leasehold premises in High Wycombe, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in High Wycombe with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When a lease has less than eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is payable.

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

It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not issue a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This may cause difficulties once you come to dispose of or remortgage your flat as it will be practically unmortgageable. You may have no imminent desire to sell but when you do your buyer will need to hold off for a couple of years before being able to exercise the right to a a lease extension.

Get in touch with one of our High Wycombe lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in High Wycombe,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with High Wycombe valuers.

High Wycombe Lease Extension Case Studies:

Seth, High Wycombe, Buckinghamshire,

Seth owned a 2 bedroom apartment in High Wycombe being marketed with a lease of a few days over 61 years remaining. Seth on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Seth to invoke his statutory right. Seth procured expert advice and secured satisfactory deal informally and sell the flat.

High Wycombe case:

Last year we were called by Mr N Pérez , who acquired a ground floor apartment in High Wycombe in April 2008. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical homes in High Wycombe with 100 year plus lease were in the region of £189,000. The mid-range amount of ground rent was £55 billed yearly. The lease came to a finish in 2079. Taking into account 53 years unexpired we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of legals.

High Wycombe case:

In 2010 we were e-mailed by Mrs S Cook who, having bought a ground floor apartment in High Wycombe in September 1999. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical homes in High Wycombe with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease lapsed on 18 May 2099. Given that there were 73 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.