Unfortunately that a Buckley residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Buckley property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term slips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Buckley will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Buckley with in excess of one hundred years outstanding on the lease are often 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 buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 conveyancing solicitor we work with provide it.
Last Winter Omar, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Buckley. In buying his property two decades ago, the unexpired term was of little significance. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Omar was able to extend his lease just in the nick of time last August. Omar and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If he failed to meet the deadline, the price would have escalated by at least £1,025.
In 2009 we were phoned by Dr E Pérez who, having was assigned a lease of a garden flat in Buckley in November 2000. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative premises in Buckley with 100 year plus lease were in the region of £250,400. The mid-range ground rent payable was £65 billed yearly. The lease ended on 10 October 2090. Having 64 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus expenses.
In 2014 we were called by Dr T Moreau who, having completed a ground floor flat in Buckley in July 2006. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar premises in Buckley with 100 year plus lease were worth £189,000. The mid-range ground rent payable was £55 collected annually. The lease terminated on 7 April 2079. Taking into account 53 years outstanding we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.