With a residential leasehold property in High Wycombe, you are in fact renting it for a certain period 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 may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years left. Anyone in High Wycombe with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has below 80 years left, under the relevant legislation the landlord can calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in High Wycombe with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in High Wycombe can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with High Wycombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the landlord of her purpose-built apartment in High Wycombe, Emily initiated the lease extension process as the 80 year threshold was fast approaching. The lease extension was finalised in August 2007. The landlord’s costs were restricted to below five hundred pounds.
Mr and Mrs. U Bell took over the lease of a garden flat in High Wycombe in October 2001. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Identical flats in High Wycombe with an extended lease were in the region of £191,400. The average amount of ground rent was £55 collected quarterly. The lease lapsed on 4 November 2080. Given that there were 54 years left we calculated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 plus costs.
Dr A Bernard moved into a first floor flat in High Wycombe in February 2005. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative flats in High Wycombe with 100 year plus lease were valued around £295,000. The mid-range ground rent payable was £45 collected every twelve months. The lease came to a finish on 21 April 2100. Taking into account 74 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.