Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Great Missenden. Clearly, the term of lease left reduces over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Great Missenden have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful consideration before delaying your Great Missenden lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Leeds Building Society | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
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 terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Ben, came precariously close to the 80-year mark with the lease on his leasehold apartment in Great Missenden. In buying his property 19 years ago, the lease term was of little interest. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Ben arranged for a lease extension just ahead of time last June. Ben and the freeholder via the managing agents eventually settled on the final figure of £5,000 . If the lease had descended to less than eighty years, the price would have become more costly by a minimum £1,100.
Mr O Moreau was assigned a lease of a basement apartment in Great Missenden in February 2010. The question was if we could approximate the price could be to extend the lease by 90 years. Comparative flats in Great Missenden with a long lease were worth £250,000. The average ground rent payable was £50 collected monthly. The lease expired in 2096. Considering the 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2010 we were approached by Mr and Mrs. U Thomas who, having was assigned a lease of a garden apartment in Great Missenden in October 1998. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Identical residencies in Great Missenden with a long lease were valued about £246,800. The average amount of ground rent was £60 invoiced every twelve months. The lease lapsed on 21 September 2076. Taking into account 50 years outstanding we approximated the premium to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of costs.