Unfortunately that a Buckden residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Buckden property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Most leasehold owners in Buckden will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Buckden with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 maintenance charges merit it.
|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.|
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|Leeds Building Society||85 years remaing 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.
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
Regardless of whether you are a tenant or a freeholder in Buckden,the lease extension experts 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.
Two years ago Teddy, came precariously close to the eighty-year threshold with the lease on his basement apartment in Buckden. Having bought his home 19 years previously, the length of the lease was of minimal concern. As luck would have it, he recognised he would imminently be paying an inflated amount for a lease extension. Teddy arranged for a lease extension just ahead of time in July. Teddy and the freeholder in the end agreed on an amount of £5,500 . If he not met the deadline, the price would have escalated by a minimum £850.
In 2009 we were called by Mr and Mrs. W Gunderson who, having owned a one bedroom apartment in Buckden in November 2007. The dilemma was if we could approximate the price would be for a 90 year lease extension. Identical premises in Buckden with an extended lease were worth £218,400. The mid-range amount of ground rent was £60 billed quarterly. The lease came to a finish on 14 July 2079. Having 59 years left we approximated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of professional charges.
Last Summer we were approach by Mrs Amelia Thomas , who purchased a newly refurbished apartment in Buckden in July 2003. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Comparative premises in Buckden with a long lease were in the region of £205,000. The average amount of ground rent was £50 billed monthly. The lease end date was on 18 February 2099. Considering the 79 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £7,600 and £8,800 not including professional charges.