Princes Risborough leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Princes Risborough will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Princes Risborough with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake 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 lawyer we work with provide it.
Trailing unsuccessful negotiations with the landlord of her studio apartment in Princes Risborough, Chelsea commenced the lease extension process just as her lease was nearing the critical 80-year deadline. The legal work was finalised in August 2013. The landlord’s charges were kept to an absolute minimum.
In 2014 we were e-mailed by Mr and Mrs. K Cox who, having moved into a ground floor flat in Princes Risborough in October 1998. The question was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparable homes in Princes Risborough with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 billed annually. The lease lapsed in 2088. Given that there were 62 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of costs.
In 2012 we were called by Mr A Williams who, having owned a one bedroom apartment in Princes Risborough in January 2002. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Comparable flats in Princes Risborough with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 collected annually. The lease ended on 2 August 2099. Having 73 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.