Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in High Wycombe. Inevitably, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in High Wycombe have the right to extend the lease for an additional ninety years in accordance with statute. Please give careful deliberation before putting off your High Wycombe lease extension. Holding off that expense now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with undertake High Wycombe 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.
Muhammad owned a studio apartment in High Wycombe being marketed with a lease of a little over sixty years unexpired. Muhammad informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were approached by Mr Felix Norbert who, having moved into a ground floor flat in High Wycombe in August 2010. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative properties in High Wycombe with a long lease were in the region of £257,800. The average amount of ground rent was £65 invoiced quarterly. The lease came to a finish in 2090. Considering the 65 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus professional charges.
In 2014 we were approached by Ms Morgan Johnson who, having acquired a ground floor flat in High Wycombe in January 2012. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable residencies in High Wycombe with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 billed every twelve months. The lease expired in 2079. Having 54 years remaining we calculated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 plus fees.