The market value of a leasehold property in Buckingham is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded ahead of the 80 year threshold. Statute enables Buckingham qualifying lessees to an additional term of 90 years over and above the unexpired term, at a nominal rent (no ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Buckingham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Buckingham valuers.
In 2014 Alex, came critically close to the 80-year mark with the lease on his two bedroom flat in Buckingham. In buying his property two decades ago, the unexpired term was of little bearing. As luck would have it, he recognised he needed to take action soon on a lease extension. Alex arranged for a lease extension at the eleventh hour last April. Alex and the landlord ultimately settled on a premium of £5,500 . If he failed to meet the deadline, the price would have increased by at least £1,150.
Mr and Mrs. T Parker bought a one bedroom flat in Buckingham in July 2012. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparable properties in Buckingham with a long lease were worth £270,000. The mid-range ground rent payable was £55 billed per annum. The lease concluded in 2102. Given that there were 76 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Dr Abbie Baker moved into a studio flat in Buckingham in June 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Buckingham with 100 year plus lease were valued around £176,200. The mid-range ground rent payable was £65 collected quarterly. The lease concluded on 24 February 2082. Having 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 not including costs.