There is no doubt about it a leasehold property in Buckden is a wasting asset as a result of the diminishing lease term. Where the lease has, over 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. Many flat owners in Buckden will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Buckden with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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. |
| 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 |
The conveyancers that we work with procure Buckden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Lucas, started to get close to the 80-year threshold with the lease on his ground floor flat in Buckden. In buying his home 18 years previously, the lease term was of no bearing. Luckily, he recognised he would soon be paying an inflated amount for a lease extension. Lucas extended the lease just under the wire last September. Lucas and the freeholder via the management company subsequently settled on an amount of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £975.
Mr and Mrs. E Jones bought a garden apartment in Buckden in March 1995. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative flats in Buckden with 100 year plus lease were in the region of £223,400. The average amount of ground rent was £60 invoiced quarterly. The lease ran out on 15 September 2084. Having 59 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of costs.
In 2010 we were approached by Mr and Mrs. J Rose who, having moved into a first floor apartment in Buckden in March 1997. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparable residencies in Buckden with an extended lease were valued about £205,000. The average ground rent payable was £50 billed per annum. The lease lapsed in 2104. Given that there were 79 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.