The market value of Princes Risborough leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is less than 80 years
Leasehold properties in Princes Risborough with in excess of one hundred years unexpired on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Princes Risborough,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Princes Risborough valuers.
Off the back of protracted negotiations with the landlord of her leasehold apartment in Princes Risborough, Rachel initiated the lease extension process just as her lease was nearing the critical eighty-year threshold. The transaction was concluded in October 2006. The landlord’s fees were negotiated to slightly above four hundred pounds.
Last year we were called by Dr O Wood , who owned a purpose-built flat in Princes Risborough in April 2006. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative homes in Princes Risborough with an extended lease were in the region of £285,000. The average amount of ground rent was £55 billed annually. The lease expired on 28 June 2103. Having 79 years left we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.
Ms K Adams bought a basement apartment in Princes Risborough in January 1997. The question was if we could estimate the price would be to prolong the lease by ninety years. Comparable flats in Princes Risborough with a long lease were worth £193,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed on 19 October 2083. Given that there were 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of costs.