Buckden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes 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 would be well advised to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 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 properties in Buckden with over 100 years remaining 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|Chelsea Building Society||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.|
|Coventry Building Society||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.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
The conveyancing solicitors 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.
Trailing protracted discussions with the freeholder of her basement apartment in Buckden, Kayleigh initiated the lease extension process just as the lease was nearing the crucial eighty-year mark. The transaction was finalised in May 2011. The freeholder’s costs were negotiated to approximately 550 GBP.
Last month we were e-mailed by Ms W James , who acquired a one bedroom flat in Buckden in September 2008. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Buckden with 100 year plus lease were in the region of £257,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease lapsed on 20 March 2086. Given that there were 65 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of expenses.
Last Spring we were called by Dr Jude Taylor , who purchased a ground floor apartment in Buckden in June 2004. We are asked if we could estimate the price would be for a ninety year lease extension. Identical residencies in Buckden with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 billed annually. The lease concluded in 2075. Taking into account 54 years outstanding we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including costs.