Unfortunately that a Princes Risborough residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Princes Risborough property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Princes Risborough will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold residencies in Princes Risborough with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Omar owned a high value apartment in Princes Risborough on the market with a lease of just over sixty years unexpired. Omar on an informal basis spoke with his freeholder 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 on the basis of an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Omar to invoke his statutory right. Omar procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were called by Dr W Rivera who, having completed a basement flat in Princes Risborough in April 1996. The question was if we could approximate the premium would be to extend the lease by 90 years. Comparative flats in Princes Risborough with a long lease were worth £265,000. The average ground rent payable was £50 invoiced annually. The lease ran out on 12 June 2099. Considering the 74 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
In 2014 we were approached by Mr and Mrs. D Sánchez who, having completed a one bedroom flat in Princes Risborough in May 2000. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparable properties in Princes Risborough with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease came to a finish in 2079. Considering the 54 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus professional charges.