Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Buckingham. Inevitably, the length of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Buckingham have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give due consideration before putting off your Buckingham lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Buckingham can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
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 Buckingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Samuel was the the leasehold proprietor of a high value flat in Buckingham being sold with a lease of fraction over 61 years remaining. Samuel informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
In 2012 we were called by Mr N Davies who, having completed a studio flat in Buckingham in November 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar flats in Buckingham with an extended lease were worth £200,800. The mid-range ground rent payable was £65 billed quarterly. The lease ran out on 18 September 2086. Given that there were 60 years left we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.
Last Spring we were contacted by Dr L Laurent , who moved into a purpose-built apartment in Buckingham in May 2003. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Identical flats in Buckingham with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 billed quarterly. The lease came to a finish on 1 November 2097. Given that there were 71 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.