Top reasons for Buckingham lease extension

Why you should start your Buckingham lease extension today:

A Buckingham leasehold property depreciates with the years remaining on the lease.

The only way is down when it comes to Buckingham lease terms. Buckingham flats that have a remaining term lower than 80 years will de-escalate in market price even faster, and the cost to extend your lease will rise.

An extended lease is almost the same value as a freehold

Leasehold residencies in Buckingham with more than 100 years left 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions may not loan monies with a short lease

Almost all mortgage lenders require a lengthy amount of time remaining on any leasehold residence before they will consider it as adequate security. Regardless of whether you require a mortgage, you should keep in mind that it is likely that someone wanting to purchase your property in the future might well do, so in the event that they can't get a mortgage, then the financial worth of your property will likely suffer. In the last decade many mortgage lenders have increased the required minimum lease length that they are willing to accept

Get in touch with one of our Buckingham lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Buckingham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Buckingham valuers.

Buckingham Lease Extension Case Summaries:

Alfie, Buckingham, Buckinghamshire,

Alfie owned a 2 bedroom flat in Buckingham being marketed with a lease of a few days over sixty years outstanding. Alfie on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Alfie to invoke his statutory right. Alfie procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.

Buckingham case:

Mr and Mrs. M Dupont was assigned a lease of a basement flat in Buckingham in February 2005. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparative flats in Buckingham with an extended lease were worth £193,400. The average ground rent payable was £65 collected per annum. The lease ran out on 12 June 2085. Having 59 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus fees.

Buckingham case:

Mr and Mrs. H Hall bought a first floor flat in Buckingham in September 1996. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Buckingham with a long lease were in the region of £250,000. The average amount of ground rent was £50 collected per annum. The lease terminated on 9 November 2095. Given that there were 69 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.