There is no doubt about it a leasehold flat or house in Buckingham is a wasting asset as a result of the shortening lease. Where the residual term has, more than one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. The majority of flat owners in Buckingham will meet the qualifying criteria; however a lawyer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Buckingham with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you enhanced control over the value of your Buckingham leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Rory owned a high value flat in Buckingham being sold with a lease of fraction over 61 years remaining. Rory informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Rory to exercise his statutory right. Rory procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2010 we were contacted by Mr and Mrs. L Lefèvre who, having owned a one bedroom apartment in Buckingham in October 2010. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Comparable flats in Buckingham with a long lease were valued about £265,000. The average amount of ground rent was £50 collected every twelve months. The lease lapsed in 2099. Taking into account 73 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
In 2012 we were phoned by Mr F Carter who, having purchased a first floor flat in Buckingham in March 2011. The question was if we could approximate the premium could be to extend the lease by an additional years. Comparative residencies in Buckingham with a long lease were in the region of £264,000. The average amount of ground rent was £60 billed quarterly. The lease termination date was in 2079. Considering the 53 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including costs.