On the balance of probabilities where you own a flat in Leighton Buzzard you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced 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 wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the landlord of her two bedroom flat in Leighton Buzzard, Louise initiated the lease extension process as the 80 year threshold was quickly approaching. The transaction completed in January 2006. The freeholder’s charges were restricted to a tad over 500 pounds.
Last Christmas we were called by Dr A Brown , who acquired a first floor flat in Leighton Buzzard in August 2006. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable premises in Leighton Buzzard with an extended lease were worth £260,000. The average amount of ground rent was £50 billed yearly. The lease concluded on 14 April 2097. Considering the 71 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last Summer we were called by Mrs W Gray , who took over the lease of a purpose-built flat in Leighton Buzzard in September 1996. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable properties in Leighton Buzzard with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced yearly. The lease expired on 26 July 2077. Taking into account 51 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of expenses.