Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in High Wycombe. Inevitably, the term of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth 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 a further 90 years under legislation. You should give due consideration 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 properties in High Wycombe with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 procure professional help from a conveyancer 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 in-depth market knowledge procuring 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.
In recent months Callum, started to get close to the 80-year threshold with the lease on his two bedroom apartment in High Wycombe. Having purchased his home 18 years ago, the unexpired term was of minimal significance. Fortunately, he recognised he would soon be paying way over the odds for a lease extension. Callum was able to extend his lease at the eleventh hour last January. Callum and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If the lease had descended to less than eighty years, the amount would have increased by at least £1,150.
Last year we were approach by Mr and Mrs. W Martinez , who was assigned a lease of a purpose-built flat in High Wycombe in September 1996. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative residencies in High Wycombe with a long lease were valued about £223,400. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish in 2084. Given that there were 59 years left we approximated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 plus costs.
Last month we were contacted by Mr and Mrs. S Cooper , who moved into a one bedroom apartment in High Wycombe in October 1996. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in High Wycombe with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 billed monthly. The lease termination date was in 2104. Given that there were 79 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.