As the the remaining lease term of a Buckden domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner than later. Many flat owners in Buckden will qualify for this right; nevertheless a lawyer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you better control over the value of your Buckden leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Jamie, came very close to the 80-year threshold with the lease on his two bedroom apartment in Buckden. Having purchased his flat two decades ago, the unexpired term was of no significance. Fortunately, he became aware that he would imminently be paying an escalated premium for Extending the lease. Jamie was able to extend his lease at the eleventh hour in April. Jamie and the landlord in the end agreed on a premium of £6,000 . If he not met the deadline, the sum would have escalated by a minimum £950.
In 2013 we were approached by Dr Elijah Jackson who, having was assigned a lease of a ground floor flat in Buckden in August 2004. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Buckden with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed in 2097. Considering the 71 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
Dr W Thompson acquired a purpose-built apartment in Buckden in May 2012. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparative homes in Buckden with 100 year plus lease were worth £230,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 2 June 2086. Considering the 60 years unexpired we estimated the premium to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of expenses.