The value of Buckley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than eighty years
Leasehold residencies in Buckley with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
The conveyancers that we work with undertake Buckley 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.
Last year Daniel, started to get close to the 80-year mark with the lease on his first floor apartment in Buckley. In buying his home twenty years ago, the length of the lease was of minimal importance. Fortunately, he recognised he would imminently be paying an escalated premium for a lease extension. Daniel arranged for a lease extension just ahead of time last August. Daniel and the freeholder via the managing agents ultimately agreed on a premium of £5,500 . If he not met the deadline, the premium would have gone up by at least £1,050.
Last Spring we were called by Mr and Mrs. J Lefebvre , who moved into a basement apartment in Buckley in January 2010. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative properties in Buckley with a long lease were valued about £267,600. The average ground rent payable was £65 invoiced monthly. The lease expiry date was on 27 May 2093. Taking into account 67 years remaining we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 not including costs.
In 2014 we were phoned by Mr and Mrs. F Thompson who, having owned a one bedroom apartment in Buckley in October 2005. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparable homes in Buckley with an extended lease were valued about £206,200. The average ground rent payable was £60 invoiced per annum. The lease finished in 2082. Having 56 years remaining we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including professional charges.