Why you should start your High Wycombe lease extension

Why you should start your High Wycombe lease extension today:

Increase your lease and increase your High Wycombe property value

The market value of High Wycombe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is less than eighty years

High Wycombe property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may decide not to finance a property with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our High Wycombe lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with procure 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 lawyer we work with provide it.

High Wycombe Lease Extension Case Studies:

Daisy, High Wycombe, Buckinghamshire,

Following lengthy negotiations with the freeholder of her ground floor apartment in High Wycombe, Daisy initiated the lease extension process just as the lease was coming close to the crucial 80-year threshold. The legal work was concluded in September 2007. The landlord’s fees were negotiated to slightly above 650 GBP.

High Wycombe case:

Last Spring we were approach by Mr and Mrs. G Peterson , who moved into a ground floor flat in High Wycombe in November 2002. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparative homes in High Wycombe with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease lapsed on 10 October 2099. Taking into account 73 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.

High Wycombe case:

Last month we were e-mailed by Mrs D Jackson , who moved into a garden flat in High Wycombe in January 2007. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar premises in High Wycombe with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £60 billed monthly. The lease terminated in 2088. Having 62 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of expenses.