The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Buckhurst Hill have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Buckhurst Hill lease extension. Putting off that expense today simply increases the price you will ultimately have to pay for a lease extension.
Leasehold residencies in Buckhurst Hill with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Buckhurst Hill,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Buckhurst Hill valuers.
Finley owned a studio flat in Buckhurst Hill on the market with a lease of just over fifty eight years unexpired. Finley informally approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Finley to invoke his statutory right. Finley procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Last month we were contacted by Mr and Mrs. N Edwards , who completed a first floor flat in Buckhurst Hill in February 2010. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Buckhurst Hill with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 collected monthly. The lease finished in 2087. Given that there were 62 years as a residual term we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Buckhurst Hill residence 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 related to 2 flats. The remaining number of years on the lease was 69.26 years.