Princes Risborough leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Princes Risborough tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Princes Risborough you must investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Princes Risborough flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Princes Risborough with in excess of one hundred years outstanding 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you better control over the value of your Princes Risborough leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy negotiations with the landlord of her ground floor apartment in Princes Risborough, Hannah commenced the lease extension process just as the lease was nearing the critical 80-year threshold. The legal work completed in September 2013. The landlord’s charges were kept to an absolute minimum.
Last Winter we were called by Mr Milo Peterson , who owned a first floor apartment in Princes Risborough in January 2004. The question was if we could estimate the price would be to extend the lease by ninety years. Identical flats in Princes Risborough with an extended lease were worth £256,600. The average amount of ground rent was £60 collected per annum. The lease end date was on 5 February 2078. Taking into account 52 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £41,800 and £48,400 exclusive of costs.
Mr A González was assigned a lease of a studio flat in Princes Risborough in September 1996. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Similar properties in Princes Risborough with a long lease were valued around £218,000. The average amount of ground rent was £45 collected monthly. The lease elapsed on 23 September 2089. Considering the 63 years left we calculated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 not including expenses.