Unfortunately that a Leighton Buzzard residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Leighton Buzzard property prices.Once your lease nears 85ish years, 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 dips under eighty years - otherwise a higher premium will be payable. Most flat owners in Leighton Buzzard will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold properties in Leighton Buzzard with more than 100 years remaining on the lease are sometimes regarded as a ‘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 reversionary interest unless savings on ground rent and estate 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. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The conveyancing solicitors that we work with undertake Leighton Buzzard 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.
Two years ago James, came precariously near to the 80-year threshold with the lease on his purpose- built flat in Leighton Buzzard. In buying his property 18 years previously, the unexpired term was of minimal importance. Fortunately, he noticed he would imminently be paying an inflated amount for a lease extension. James arranged for a lease extension just ahead of time last January. James and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If he failed to meet the deadline, the sum would have gone up by a minimum £1,125.
Last Winter we were e-mailed by Mr V Simon , who owned a first floor apartment in Leighton Buzzard in July 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable properties in Leighton Buzzard with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease elapsed in 2103. Given that there were 77 years remaining we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.
Last Spring we were approach by Mr and Mrs. R Johnson , who completed a purpose-built flat in Leighton Buzzard in June 2012. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Similar homes in Leighton Buzzard with 100 year plus lease were in the region of £183,600. The average ground rent payable was £65 collected yearly. The lease end date was on 27 May 2083. Given that there were 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.