Buckden leases on domestic deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Buckden will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain situations you may not be entitled. There are also strict timetables and formalities to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Buckden,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Buckden valuers.
Dexter was the the leasehold proprietor of a 2 bedroom apartment in Buckden on the market with a lease of a little over 72 years unexpired. Dexter informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. U Williams purchased a basement flat in Buckden in September 2000. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative homes in Buckden with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed per annum. The lease expired on 26 February 2102. Having 77 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
Last Summer we were contacted by Mr and Mrs. J Turner , who was assigned a lease of a basement flat in Buckden in June 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar residencies in Buckden with 100 year plus lease were in the region of £265,200. The average amount of ground rent was £65 collected annually. The lease concluded on 2 August 2091. Considering the 66 years outstanding we estimated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 not including expenses.