When it comes to domestic leasehold premises in Great Missenden, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years left. Anyone in Great Missenden with a lease approaching 81 years left should seriously think of extending it sooner rather than later. When a lease has below 80 years remaining, under the current statute the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Great Missenden with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Great Missenden valuers.
Riley owned a studio flat in Great Missenden on the market with a lease of just over fifty eight years remaining. Riley informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be payable on a lease extension were Riley to invoke his statutory right. Riley procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last Summer we were contacted by Mr and Mrs. S Moore , who purchased a basement flat in Great Missenden in May 1998. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Great Missenden with a long lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expired on 5 August 2105. Given that there were 79 years left we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
Last Summer we were contacted by Ms L Ricardo , who acquired a purpose-built apartment in Great Missenden in June 1997. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical premises in Great Missenden with 100 year plus lease were worth £193,400. The mid-range amount of ground rent was £65 collected yearly. The lease terminated on 7 February 2085. Given that there were 59 years outstanding we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including costs.