For those whose Leighton Buzzard flat is held on a long lease, our message is clear – if you do nothing, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.
Leasehold premises in Leighton Buzzard with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you increased control over the value of your Leighton Buzzard leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the freeholder of her studio apartment in Leighton Buzzard, Alexandra started the lease extension process as the eighty year deadline was fast approaching. The transaction was finalised in November 2014. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were e-mailed by Dr L Wright , who moved into a first floor apartment in Leighton Buzzard in May 2001. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical residencies in Leighton Buzzard with a long lease were in the region of £237,600. The average ground rent payable was £45 invoiced per annum. The lease ran out on 1 July 2092. Considering the 67 years outstanding we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus professional charges.
In 2009 we were called by Mr and Mrs. V Stewart who, having was assigned a lease of a purpose-built flat in Leighton Buzzard in January 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable residencies in Leighton Buzzard with a long lease were valued around £280,000. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed in 2103. Having 78 years left we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.