As the length of the unexpired term of a Buckden residential lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Buckden will qualify for this right; nevertheless a conveyancing solicitor should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Buckden can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Buckden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful discussions with the freeholder of her basement apartment in Buckden, Katie commenced the lease extension process just as her lease was nearing the critical 80-year mark. The legal work was finalised in January 2010. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were e-mailed by Dr R Watson who, having purchased a one bedroom flat in Buckden in March 2003. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Comparative properties in Buckden with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 collected monthly. The lease terminated on 3 February 2105. Given that there were 79 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.
In 2010 we were contacted by Mr J Cook who, having was assigned a lease of a first floor flat in Buckden in July 2005. The question was if we could estimate the premium could be to prolong the lease by 90 years. Comparative properties in Buckden with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2094. Having 68 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.