Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Great Missenden. Inevitably, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Great Missenden have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please give due deliberation before delaying your Great Missenden lease extension. Holding off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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. |
| Birmingham Midshires | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The lawyers that we work with procure Great Missenden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of protracted negotiations with the landlord of her basement apartment in Great Missenden, Georgia commenced the lease extension process just as the lease was coming close to the crucial 80-year mark. The lease extension completed in February 2008. The freeholder’s fees were negotiated to a tad over five hundred GBP.
Mr and Mrs. S Clarke took over the lease of a recently refurbished flat in Great Missenden in May 2007. The question was if we could approximate the premium would be for a 90 year extension to my lease. Comparative properties in Great Missenden with a long lease were valued around £176,200. The mid-range ground rent payable was £65 collected yearly. The lease came to a finish in 2082. Given that there were 56 years remaining we approximated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including expenses.
Last Winter we were phoned by Dr Alexander Girard , who took over the lease of a one bedroom flat in Great Missenden in July 2008. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparative homes in Great Missenden with a long lease were worth £237,600. The average amount of ground rent was £45 billed every twelve months. The lease ran out on 5 July 2093. Having 67 years unexpired we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of legals.