Buxton residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
Leasehold premises in Buxton with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire 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. |
Lease extensions in Buxton can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Buxton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hugo owned a high value flat in Buxton on the market with a lease of a few days over sixty years left. Hugo on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2013 we were called by Dr Aimee Smith who, having owned a studio apartment in Buxton in July 2007. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical premises in Buxton with a long lease were valued about £171,800. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed in 2075. Considering the 50 years left we approximated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including legals.
Last Spring we were e-mailed by Dr F Walker , who owned a basement apartment in Buxton in November 2002. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Buxton with an extended lease were worth £280,000. The mid-range ground rent payable was £45 billed yearly. The lease elapsed in 2095. Given that there were 70 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.