It’s a harsh certainty that a Buckley residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Buckley property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Buckley will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Buckley with more than 100 years left 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Buckley leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Liam, came very close to the eighty-year threshold with the lease on his one bedroom flat in Buckley. Having bought his property two decades ago, the lease term was of little importance. Fortunately, he recognised he needed to take action soon on a lease extension. Liam was able to extend his lease just ahead of time last April. Liam and the freeholder via the management company in the end agreed on an amount of £5,000 . If he not met the deadline, the price would have escalated by at least £1,000.
Mr and Mrs. R Mitchell owned a newly refurbished apartment in Buckley in November 2008. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Similar flats in Buckley with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 billed yearly. The lease terminated on 26 April 2097. Having 73 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.
Mr N Parker owned a purpose-built apartment in Buckley in May 1999. The question was if we could approximate the premium could be for a 90 year lease extension. Similar homes in Buckley with an extended lease were in the region of £240,600. The mid-range ground rent payable was £60 invoiced per annum. The lease expired on 22 October 2086. Given that there were 62 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.