With a long leasehold premises in Leighton Buzzard, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years left. Leasehold owners in Leighton Buzzard with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has less than 80 years remaining, under the current statute the landlord is entitled to calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Leighton Buzzard with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Leighton Buzzard,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leighton Buzzard valuers.
Trailing protracted negotiations with the freeholder of her one bedroom flat in Leighton Buzzard, Mollie started the lease extension process just as her lease was nearing the critical eighty-year deadline. The lease extension was finalised in February 2010. The landlord’s costs were kept to an absolute minimum.
In 2011 we were called by Ms Paige Clarke who, having was assigned a lease of a ground floor flat in Leighton Buzzard in January 2004. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative residencies in Leighton Buzzard with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease termination date was on 13 June 2101. Considering the 75 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
In 2010 we were e-mailed by Mr Finn Jones who, having owned a purpose-built apartment in Leighton Buzzard in August 2002. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Identical premises in Leighton Buzzard with an extended lease were valued around £173,800. The mid-range ground rent payable was £65 invoiced per annum. The lease expiry date was on 8 September 2081. Considering the 55 years outstanding we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus expenses.