Princes Risborough leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Princes Risborough will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Princes Risborough with more than one hundred 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Princes Risborough can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Princes Risborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her ground floor flat in Princes Risborough, Poppy commenced the lease extension process as the eighty year threshold was fast approaching. The transaction completed in February 2008. The freeholder’s fees were restricted to less than 550 pounds.
Mr D Roberts bought a first floor apartment in Princes Risborough in October 2011. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Princes Risborough with an extended lease were in the region of £280,000. The average ground rent payable was £55 billed monthly. The lease expired on 17 March 2105. Having 79 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.
In 2014 we were called by Dr S Lefèvre who, having moved into a first floor flat in Princes Risborough in August 2009. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparable flats in Princes Risborough with 100 year plus lease were in the region of £193,400. The average amount of ground rent was £65 invoiced yearly. The lease ran out in 2085. Given that there were 59 years left we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of legals.