Buckhurst Hill leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Buckhurst Hill tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Buckhurst Hill you should see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Buckhurst Hill,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Buckhurst Hill valuers.
In the wake of eight months of unsuccessful negotiations with the landlord of her two bedroom apartment in Buckhurst Hill, Grace initiated the lease extension process as the eighty year deadline was quickly advancing. The transaction completed in February 2005. The landlord’s charges were kept to an absolute minimum.
Ms Ellen Rivera was assigned a lease of a newly refurbished flat in Buckhurst Hill in April 2006. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparable flats in Buckhurst Hill with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 collected yearly. The lease lapsed in 2099. Considering the 73 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Buckhurst Hill flat is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case affected 2 flats. The remaining number of years on the lease was 69.26 years.