Chances are that if you own a flat in Buckingham you actually own a long leasehold interest over your property
Leasehold residencies in Buckingham with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake 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.
16 months ago Zachary, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Buckingham. Having purchased his home two decades ago, the unexpired term was of minimal relevance. Thankfully, he became aware that he needed to take action soon on a lease extension. Zachary arranged for a lease extension at the eleventh hour last June. Zachary and the freeholder via the managing agents ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the sum would have escalated by at least £1,075.
Last Autumn we were phoned by Mr and Mrs. T Turner , who took over the lease of a purpose-built apartment in Buckingham in June 2012. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable properties in Buckingham with an extended lease were valued around £250,000. The average ground rent payable was £50 invoiced quarterly. The lease ended in 2094. Taking into account 69 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
Last year we were called by Mr and Mrs. A Martínez , who bought a purpose-built apartment in Buckingham in August 2002. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical premises in Buckingham with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 collected per annum. The lease concluded in 2105. Given that there were 80 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.