Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in High Wycombe. Inevitably, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in High Wycombe have the legal entitlement to extend the lease for a further 90 years in accordance with statute. You should give due attention before putting off your High Wycombe lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
Leasehold premises in High Wycombe with in excess of one hundred years remaining on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your High Wycombe leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Max was the the leasehold owner of a 2 bedroom apartment in High Wycombe on the market with a lease of a few days over fifty eight years left. Max informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Max to invoke his statutory right. Max procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
In 2014 we were contacted by Mr and Mrs. D Martin who, having took over the lease of a one bedroom apartment in High Wycombe in July 2011. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar premises in High Wycombe with an extended lease were worth £260,200. The mid-range ground rent payable was £65 billed annually. The lease terminated on 24 September 2091. Considering the 66 years outstanding we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus legals.
Last Autumn we were phoned by Dr Reuben Harris , who acquired a one bedroom apartment in High Wycombe in November 2000. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar homes in High Wycombe with a long lease were in the region of £198,800. The average ground rent payable was £55 invoiced monthly. The lease came to a finish in 2080. Having 55 years outstanding we approximated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including expenses.