Unfortunately that a Buckingham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Buckingham property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Buckingham will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Buckingham with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| National Westminster Bank | |
| TSB | |
| Virgin |
The conveyancing solicitors that we work with handle Buckingham 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 lawyer we work with provide it.
18 months ago Ben, came critically close to the eighty-year threshold with the lease on his leasehold apartment in Buckingham. Having purchased his flat two decades ago, the lease term was of little bearing. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Ben arranged for a lease extension just ahead of time in August. Ben and the freeholder via the managing agents in the end settled on sum of £6,000 . If the lease had gone lower than 80 years, the price would have gone up by a minimum £1,000.
Dr O Baker acquired a one bedroom flat in Buckingham in November 2010. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Similar properties in Buckingham with 100 year plus lease were worth £218,000. The mid-range ground rent payable was £45 billed quarterly. The lease terminated in 2089. Considering the 63 years remaining we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including legals.
Last Spring we were contacted by Mr and Mrs. F Stewart , who bought a newly refurbished apartment in Buckingham in January 2002. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Buckingham with an extended lease were in the region of £265,000. The average amount of ground rent was £50 collected quarterly. The lease ran out on 8 August 2099. Given that there were 73 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.