The market value of Buckingham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than 80 years
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Buckingham,the lease extension experts 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 Buckingham valuers.
Lewis owned a 2 bedroom flat in Buckingham being marketed with a lease of fraction over 61 years left. Lewis on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
In 2014 we were e-mailed by Dr G Sánchez who, having took over the lease of a garden apartment in Buckingham in October 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Buckingham with 100 year plus lease were worth £203,200. The mid-range ground rent payable was £65 collected per annum. The lease lapsed in 2086. Taking into account 61 years remaining we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus expenses.
Mr Jake Lambert owned a first floor apartment in Buckingham in May 2010. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative premises in Buckingham with a long lease were valued around £260,000. The average ground rent payable was £50 invoiced quarterly. The lease ended on 21 March 2097. Considering the 72 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.