Wycombe Marsh leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Wycombe Marsh residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wycombe Marsh you would be well advised to check if your lease has between 70 and ninety years remaining. There are good reasons why a Wycombe Marsh leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Wycombe Marsh leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Riley, came very near to the eighty-year threshold with the lease on his studio flat in Wycombe Marsh. Having bought his flat two decades ago, the length of the lease was of little significance. Thankfully, he noticed he needed to take steps soon on Extending the lease. Riley was able to extend his lease just ahead of time last April. Riley and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If he had missed the deadline, the sum would have gone up by at least £925.
Last Spring we were e-mailed by Dr H Gray , who bought a purpose-built apartment in Wycombe Marsh in March 1995. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparable homes in Wycombe Marsh with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded on 17 February 2096. Given that there were 70 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
In 2009 we were e-mailed by Dr B Turner who, having took over the lease of a one bedroom flat in Wycombe Marsh in March 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Wycombe Marsh with an extended lease were valued about £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease ran out on 24 April 2076. Considering the 50 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of professional charges.