Buckden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Buckden enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Buckden you really ought to check if your lease has between 70 and 90 years left. There are good reasons why a Buckden leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to 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 should be declined (see exception below). 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Buckden,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Buckden valuers.
Following lengthy discussions with the landlord of her garden flat in Buckden, Danielle commenced the lease extension process just as the lease was coming close to the critical eighty-year deadline. The lease extension was finalised in October 2008. The landlord’s costs were kept to an absolute minimum.
In 2010 we were phoned by Mr and Mrs. V Wright who, having owned a basement flat in Buckden in July 2005. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative premises in Buckden with a long lease were worth £300,000. The average ground rent payable was £50 invoiced yearly. The lease concluded in 2101. Having 75 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2014 we were called by Ms M Roberts who, having took over the lease of a garden apartment in Buckden in April 2000. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Identical properties in Buckden with an extended lease were worth £250,400. The mid-range ground rent payable was £65 collected annually. The lease expired on 10 August 2090. Having 64 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of expenses.