As the length of the unexpired term of a Princes Risborough domestic lease diminished so does its value and therefore the value of your property. If the lease has, in excess of 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Princes Risborough will meet the qualifying criteria; however a conveyancer will be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancers that we work with procure Princes Risborough 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.
Half a year ago Evan, started to get close to the 80-year mark with the lease on his studio flat in Princes Risborough. Having bought his property 19 years previously, the length of the lease was of little interest. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. Evan arranged for a lease extension just in the nick of time in May. Evan and the freeholder via the management company eventually agreed on a premium of £5,000 . If he had missed the deadline, the premium would have increased by at least £925.
Mr and Mrs. G Carter was assigned a lease of a first floor apartment in Princes Risborough in June 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Princes Risborough with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease elapsed in 2081. Taking into account 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus costs.
In 2014 we were approached by Mr and Mrs. R Díaz who, having purchased a newly refurbished apartment in Princes Risborough in February 2004. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Princes Risborough with an extended lease were in the region of £237,600. The mid-range amount of ground rent was £45 collected per annum. The lease terminated on 15 January 2092. Taking into account 67 years unexpired we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 plus professional charges.