There is no doubt about it a leasehold flat or house in High Wycombe is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond one hundred years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in High Wycombe will qualify for this right; nevertheless a conveyancer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in High Wycombe with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 conveyancing solicitors that we work with handle 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.
Jasper owned a studio flat in High Wycombe on the market with a lease of fraction over 72 years left. Jasper on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Jasper to exercise his statutory right. Jasper procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr Dylan Roberts acquired a purpose-built flat in High Wycombe in September 2004. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in High Wycombe with 100 year plus lease were valued around £225,800. The average ground rent payable was £60 billed quarterly. The lease termination date was in 2086. Given that there were 60 years remaining we approximated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of professional charges.
Mr and Mrs. M Roux purchased a garden apartment in High Wycombe in May 2003. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Comparable premises in High Wycombe with an extended lease were valued about £210,000. The average ground rent payable was £50 invoiced monthly. The lease finished in 2106. Having 80 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.