Buckden leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the 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 should check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty 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
Leasehold residencies in Buckden with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Buckden,the lease extension solicitors 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.
Last Autumn Liam, came very near to the eighty-year mark with the lease on his ground floor flat in Buckden. In buying his flat 19 years ago, the length of the lease was of no interest. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Liam arranged for a lease extension just under the wire last September. Liam and the freeholder via the management company subsequently agreed on sum of £5,000 . If he had missed the deadline, the premium would have become more costly by at least £850.
Last Spring we were e-mailed by Mr and Mrs. U Mitchell , who took over the lease of a basement apartment in Buckden in November 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Buckden with 100 year plus lease were valued about £240,600. The mid-range ground rent payable was £60 collected yearly. The lease elapsed on 14 November 2087. Taking into account 62 years as a residual term we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus legals.
In 2014 we were approached by Mr and Mrs. L Mitchell who, having took over the lease of a garden flat in Buckden in January 1995. We are asked if we could estimate the price would be to prolong the lease by ninety years. Identical flats in Buckden with 100 year plus lease were valued about £174,200. The mid-range amount of ground rent was £55 collected annually. The lease elapsed in 2076. Considering the 51 years remaining we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.