The closer a domestic lease in High Wycombe nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 100 years to run then this decrease may be fractional nevertheless there will become a point in time 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 rational as to why you should consider extending without delay. Most flat owners in High Wycombe will qualify for this right; that being said a lawyer will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your High Wycombe leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Jude, came critically near to the eighty-year mark with the lease on his ground floor apartment in High Wycombe. Having bought his property two decades ago, the unexpired term was of little relevance. by good luck, he recognised he needed to take action soon on a lease extension. Jude was able to extend his lease just ahead of time last September. Jude and the landlord subsequently settled on an amount of £5,500 . If the lease had dipped lower than 80 years, the premium would have gone up by a minimum £975.
Dr K Sánchez owned a purpose-built apartment in High Wycombe in September 2007. We are asked if we could estimate the price could be for a ninety year lease extension. Identical residencies in High Wycombe with an extended lease were valued about £243,000. The mid-range amount of ground rent was £65 billed yearly. The lease ran out in 2088. Considering the 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus expenses.
In 2014 we were phoned by Dr Ben Mitchell who, having bought a studio apartment in High Wycombe in April 2001. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable flats in High Wycombe with a long lease were in the region of £181,600. The average amount of ground rent was £55 billed every twelve months. The lease ran out in 2077. Having 52 years outstanding we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus expenses.