With a long leasehold property in Great Missenden, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years remaining. Anyone in Great Missenden with a lease nearing 81 years unexpired should seriously think of extending it without delay. When a lease has less than eighty years left, under the relevant legislation the landlord is entitled to calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Great Missenden with more than one hundred years unexpired on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of protracted correspondence with the landlord of her studio apartment in Great Missenden, Ellie started the lease extension process just as her lease was nearing the crucial 80-year deadline. The lease extension completed in November 2008. The freeholder’s fees were kept to an absolute minimum.
Dr K Rivera took over the lease of a garden apartment in Great Missenden in February 2011. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative properties in Great Missenden with a long lease were valued around £218,000. The mid-range amount of ground rent was £45 billed annually. The lease terminated in 2089. Taking into account 63 years left we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.
Ms B Sharif took over the lease of a one bedroom flat in Great Missenden in August 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative flats in Great Missenden with a long lease were worth £265,000. The average amount of ground rent was £50 billed yearly. The lease terminated in 2100. Considering the 74 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.