Great Missenden leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Great Missenden residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Great Missenden you would be well advised to see if your lease has between seventy and ninety years left. There are compelling reasons why a Great Missenden leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| 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. |
| 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 Great Missenden can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Great Missenden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jude owned a studio flat in Great Missenden being sold with a lease of a few days over fifty eight years left. Jude informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jude to invoke his statutory right. Jude procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Ms Abigail Brooks moved into a garden flat in Great Missenden in September 2001. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar properties in Great Missenden with an extended lease were in the region of £227,800. The average amount of ground rent was £45 collected every twelve months. The lease expired on 15 September 2090. Having 65 years left we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
Dr Alice David was assigned a lease of a studio flat in Great Missenden in July 2007. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparable flats in Great Missenden with an extended lease were worth £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease concluded on 8 April 2101. Having 76 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.