It’s a harsh certainty that a High Wycombe residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the High Wycombe property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. Most leasehold owners in High Wycombe will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 obtain guidance from a conveyancing solicitor and surveyor 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.
Last year Isaac, came critically close to the 80-year mark with the lease on his ground floor apartment in High Wycombe. Having purchased his flat twenty years ago, the unexpired term was of minimal interest. As luck would have it, he realised he would soon be paying way over the odds for Extending the lease. Isaac extended the lease at the eleventh hour in January. Isaac and the landlord subsequently settled on an amount of £5,000 . If he had missed the deadline, the sum would have increased by a minimum £1,125.
Last Spring we were contacted by Mr and Mrs. R Ricardo , who bought a basement apartment in High Wycombe in March 2011. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in High Wycombe with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £50 collected annually. The lease elapsed on 12 November 2101. Considering the 75 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.
Mr and Mrs. O James owned a garden flat in High Wycombe in October 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in High Wycombe with 100 year plus lease were valued around £250,400. The average ground rent payable was £65 billed monthly. The lease lapsed on 18 April 2090. Having 64 years unexpired we approximated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of costs.