Princes Risborough leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Princes Risborough residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Princes Risborough you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 |
| 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 lawyers that we work with handle Princes Risborough 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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful correspondence with the freeholder of her leasehold apartment in Princes Risborough, Natasha started the lease extension process just as the lease was nearing the critical 80-year deadline. The transaction was finalised in January 2013. The freeholder’s charges were kept to an absolute minimum.
Last Summer we were contacted by Dr P Turner , who took over the lease of a purpose-built apartment in Princes Risborough in July 2011. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical flats in Princes Risborough with a long lease were valued about £203,200. The average ground rent payable was £65 invoiced per annum. The lease lapsed in 2087. Considering the 61 years outstanding we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of costs.
In 2011 we were called by Dr Nicole Young who, having completed a one bedroom flat in Princes Risborough in May 1995. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Princes Risborough with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease expired in 2098. Taking into account 72 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.