When it comes to domestic leasehold property in Princes Risborough, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years left. Residents in Princes Risborough with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has less than 80 years left, under the current statute the landlord can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Following unsuccessful discussions with the freeholder of her studio flat in Princes Risborough, Leah started the lease extension process as the eighty year deadline was rapidly nearing. The legal work completed in March 2010. The freeholder’s fees were negotiated to less than 700 GBP.
In 2014 we were called by Mr D Mitchell who, having bought a first floor apartment in Princes Risborough in October 2004. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative properties in Princes Risborough with a long lease were worth £255,000. The mid-range amount of ground rent was £50 collected quarterly. The lease concluded in 2096. Having 71 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
Last year we were called by Mr and Mrs. R White , who completed a one bedroom flat in Princes Risborough in June 2001. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparable homes in Princes Risborough with an extended lease were worth £254,200. The average ground rent payable was £60 billed quarterly. The lease concluded in 2076. Considering the 51 years outstanding we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of professional charges.