The re-sale value of a leasehold property in Great Missenden depends on how many years the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that all matters can be addressed in advance of the 80 year mark. Current legislation entitles Great Missenden qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service gives you increased control over the value of your Great Missenden leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the freeholder of her purpose-built flat in Great Missenden, Katie started the lease extension process as the eighty year threshold was quickly approaching. The lease extension was finalised in June 2014. The landlord’s costs were kept to an absolute minimum.
Last Summer we were e-mailed by Mr and Mrs. I Lefebvre , who acquired a garden flat in Great Missenden in July 1998. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable homes in Great Missenden with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease concluded in 2086. Considering the 60 years outstanding we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of legals.
Mr Andrew Harris bought a purpose-built flat in Great Missenden in March 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Great Missenden with a long lease were worth £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease concluded on 11 October 2097. Taking into account 71 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.