The re-sale value of a leasehold property in Great Missenden is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded in advance of the eighty year cut off point. Statute enables Great Missenden qualifying lessees to an additional term of ninety years in addition to the remaining term, at a peppercorn rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you better control over the value of your Great Missenden leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months William, came very near to the eighty-year threshold with the lease on his purpose- built apartment in Great Missenden. Having bought his property two decades ago, the lease term was of little relevance. by good luck, he noticed he would imminently be paying an inflated amount for a lease extension. William extended the lease just ahead of time in August. William and the freeholder subsequently agreed on a premium of £5,500 . If he had missed the deadline, the sum would have increased by at least £875.
In 2012 we were phoned by Mr and Mrs. H Bonnet who, having moved into a one bedroom apartment in Great Missenden in August 2011. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Great Missenden with an extended lease were in the region of £264,000. The average ground rent payable was £60 billed quarterly. The lease expired on 23 October 2077. Given that there were 53 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 not including costs.
In 2011 we were phoned by Dr Logan Petit who, having purchased a first floor flat in Great Missenden in November 2012. We are asked if we could approximate the price would be for a 90 year lease extension. Identical homes in Great Missenden with a long lease were worth £225,400. The average ground rent payable was £45 collected monthly. The lease finished on 16 May 2088. Taking into account 64 years remaining we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 plus fees.