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 your lease becomes more expensive. It is the case that most Leighton Buzzard tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Leighton Buzzard you should see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same 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 many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Skipton Building Society |
The lawyers that we work with handle 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.
John was the the leasehold owner of a conversion flat in Leighton Buzzard on the market with a lease of a little over 72 years remaining. John informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were John to exercise his statutory right. John procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Dr E Hall acquired a one bedroom flat in Leighton Buzzard in March 2006. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Leighton Buzzard with a long lease were worth £215,600. The average amount of ground rent was £45 collected annually. The lease termination date was in 2088. Taking into account 62 years unexpired we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus professional charges.
In 2012 we were approached by Mr H Cox who, having bought a first floor apartment in Leighton Buzzard in July 1997. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Leighton Buzzard with a long lease were worth £265,000. The mid-range amount of ground rent was £50 collected yearly. The lease end date was on 1 July 2099. Having 73 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.