Leighton Buzzard leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Leighton Buzzard residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Leighton Buzzard you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Leighton Buzzard flat owner with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Leighton Buzzard can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in this area.
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 a wealth of experience dealing with Leighton Buzzard lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Luke, started to get near to the eighty-year mark with the lease on his first floor apartment in Leighton Buzzard. Having purchased his home two decades ago, the length of the lease was of little concern. Luckily, he recognised he needed to take action soon on Extending the lease. Luke arranged for a lease extension just under the wire in May. Luke and the freeholder ultimately agreed on a premium of £5,000 . If the lease had descended to less than eighty years, the sum would have increased by at least £1,125.
Ms B Morel purchased a one bedroom apartment in Leighton Buzzard in June 2012. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Leighton Buzzard with 100 year plus lease were valued about £242,600. The average ground rent payable was £45 invoiced yearly. The lease ran out in 2093. Considering the 67 years outstanding we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including expenses.
Last Christmas we were called by Mr and Mrs. J Lambert , who moved into a recently refurbished apartment in Leighton Buzzard in June 2009. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Identical properties in Leighton Buzzard with an extended lease were worth £280,000. The average amount of ground rent was £55 billed yearly. The lease concluded on 24 February 2104. Considering the 78 years as a residual term we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.