Princes Risborough leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Princes Risborough will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Princes Risborough,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Princes Risborough valuers.
Two years ago Isaac, came perilously close to the 80-year threshold with the lease on his ground floor apartment in Princes Risborough. In buying his home two decades ago, the unexpired term was of minimal relevance. Thankfully, he noticed he needed to take action soon on a lease extension. Isaac was able to extend his lease just ahead of time in March. Isaac and the freeholder via the management company in the end agreed on an amount of £5,500 . If the lease had gone to less than eighty years, the amount would have become more costly by at least £1,100.
In 2010 we were approached by Ms Emma Stewart who, having owned a first floor apartment in Princes Risborough in August 1999. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative premises in Princes Risborough with a long lease were worth £264,000. The average amount of ground rent was £60 invoiced annually. The lease came to a finish in 2079. Given that there were 53 years left we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including professional charges.
In 2011 we were approached by Dr M Pérez who, having completed a purpose-built flat in Princes Risborough in April 2003. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative properties in Princes Risborough with an extended lease were valued around £220,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated on 24 November 2090. Given that there were 64 years left we estimated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 plus costs.