Unfortunately that a High Wycombe residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. 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 need to start thinking about 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 lawyer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in High Wycombe,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with High Wycombe valuers.
Ben was the the leasehold owner of a 2 bedroom apartment in High Wycombe on the market with a lease of fraction over fifty eight years remaining. Ben on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last Christmas we were called by Mr and Mrs. A Murphy , who purchased a newly refurbished flat in High Wycombe in September 2011. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative flats in High Wycombe with an extended lease were worth £191,400. The mid-range ground rent payable was £55 invoiced annually. The lease terminated in 2078. Considering the 54 years left we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 plus costs.
Last Summer we were e-mailed by Dr G Rivera , who bought a one bedroom apartment in High Wycombe in June 1999. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative homes in High Wycombe with an extended lease were worth £295,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ran out on 2 July 2098. Considering the 74 years left we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.