Great Missenden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Great Missenden enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Great Missenden you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Great Missenden,the lease extension experts 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 Great Missenden valuers.
Following protracted discussions with the landlord of her basement apartment in Great Missenden, Yasmin initiated the lease extension process just as the lease was approaching the critical eighty-year deadline. The transaction completed in February 2006. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were contacted by Dr Aarav Watson , who was assigned a lease of a first floor apartment in Great Missenden in April 2009. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Great Missenden with an extended lease were in the region of £255,000. The average amount of ground rent was £50 collected quarterly. The lease came to a finish on 19 March 2097. Taking into account 71 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
In 2013 we were approached by Mr and Mrs. C Bennett who, having acquired a one bedroom apartment in Great Missenden in February 2005. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Great Missenden with a long lease were worth £254,200. The average ground rent payable was £60 collected annually. The lease concluded in 2077. Given that there were 51 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including costs.