Unfortunately that a Great Missenden residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Great Missenden property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining falls under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Great Missenden will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 Great Missenden,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Great Missenden valuers.
During the course of the last few months Riley, started to get near to the eighty-year mark with the lease on his purpose- built flat in Great Missenden. Having bought his home 18 years previously, the length of the lease was of no significance. by good luck, he recognised he would soon be paying an inflated amount for a lease extension. Riley arranged for a lease extension at the eleventh hour in September. Riley and the freeholder eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have increased by a minimum £850.
Last Spring we were contacted by Ms V Evans , who took over the lease of a garden apartment in Great Missenden in August 2012. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparable homes in Great Missenden with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed monthly. The lease ended on 1 October 2101. Taking into account 76 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Mr and Mrs. E Clark bought a first floor apartment in Great Missenden in October 1998. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical homes in Great Missenden with a long lease were valued about £176,200. The average ground rent payable was £65 collected monthly. The lease ended on 16 April 2081. Taking into account 56 years remaining we calculated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of professional charges.