When it comes to long leasehold property in Buckhurst Hill, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years remaining. Residents in Buckhurst Hill with a lease approaching 81 years remaining should seriously consider extending it sooner than later. When the lease term has below eighty years left, under the relevant statute the landlord can calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Buckhurst Hill with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Buckhurst Hill 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.
During the course of the last few months Jamie, started to get near to the 80-year threshold with the lease on his leasehold apartment in Buckhurst Hill. In buying his property two decades ago, the unexpired term was of no significance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Jamie was able to extend his lease just under the wire in January. Jamie and the freeholder via the management company eventually agreed on the final figure of £5,000 . If the lease had descended lower than 80 years, the sum would have gone up by at least £1,050.
Dr Mason Bell took over the lease of a recently refurbished flat in Buckhurst Hill in March 1998. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar premises in Buckhurst Hill with an extended lease were valued around £193,400. The mid-range ground rent payable was £65 billed monthly. The lease elapsed in 2085. Given that there were 59 years unexpired we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Buckhurst Hill residence is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case related to 2 flats. The unexpired residue of the current lease was 69.26 years.