It’s an underpublicised certainty that a Buckingham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Buckingham property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Buckingham will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers 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.
Trailing lengthy discussions with the freeholder of her first floor flat in Buckingham, Jade initiated the lease extension process as the 80 year deadline was fast advancing. The legal work was concluded in October 2015. The landlord’s fees were negotiated to below 700 GBP.
In 2010 we were called by Dr Felix Cox who, having was assigned a lease of a first floor apartment in Buckingham in September 2005. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Similar flats in Buckingham with 100 year plus lease were worth £237,600. The average ground rent payable was £45 invoiced yearly. The lease end date was on 1 August 2093. Having 67 years left we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus professional charges.
In 2014 we were contacted by Mr and Mrs. I Wood who, having acquired a studio flat in Buckingham in April 2007. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Identical properties in Buckingham with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 collected yearly. The lease ended on 11 June 2104. Having 78 years unexpired we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.