Great Missenden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Great Missenden residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Great Missenden you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Great Missenden with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Great Missenden can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 in-depth market knowledge procuring 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.
Caleb owned a studio flat in Great Missenden being marketed with a lease of just over 61 years left. Caleb on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Caleb to invoke his statutory right. Caleb procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last Christmas we were phoned by Dr Georgia Rogers , who bought a garden apartment in Great Missenden in October 2009. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative homes in Great Missenden with an extended lease were in the region of £220,400. The average amount of ground rent was £45 billed quarterly. The lease ran out in 2090. Considering the 64 years remaining we calculated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of expenses.
Dr R Taylor bought a one bedroom apartment in Great Missenden in May 2000. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative properties in Great Missenden with 100 year plus lease were worth £270,000. The average ground rent payable was £55 collected every twelve months. The lease ended on 25 August 2101. Taking into account 75 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.