High Wycombe leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. 80 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 be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain cases you may not qualify. There are also strict deadlines and steps to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in High Wycombe with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea 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. |
| 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. |
| 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. |
The conveyancers that we work with handle High Wycombe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Kyle was the the leasehold owner of a high value flat in High Wycombe on the market with a lease of a few days over 72 years left. Kyle informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kyle to exercise his statutory right. Kyle procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Mr and Mrs. N Díaz owned a garden apartment in High Wycombe in October 2008. The question was if we could approximate the premium would be to extend the lease by 90 years. Similar homes in High Wycombe with 100 year plus lease were valued about £300,000. The average amount of ground rent was £50 collected monthly. The lease concluded in 2102. Considering the 76 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Mr Mason Baker took over the lease of a newly refurbished apartment in High Wycombe in September 2006. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical homes in High Wycombe with an extended lease were valued around £257,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease terminated on 11 August 2091. Considering the 65 years outstanding we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of fees.