With a domestic leasehold premises in Buckingham, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are fewer than eighty years left. Residents in Buckingham with a lease nearing 81 years remaining should seriously consider extending it without delay. Once the lease term has under eighty years left, under the current legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Buckingham,the lease extension experts that we work with will always be prepared 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.
After unsuccessful discussions with the freeholder of her basement flat in Buckingham, Victoria initiated the lease extension process just as her lease was nearing the all-important eighty-year deadline. The lease extension completed in September 2014. The landlord’s charges were kept to an absolute minimum.
Last Summer we were phoned by Dr M Leroy , who was assigned a lease of a recently refurbished flat in Buckingham in April 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Buckingham with an extended lease were in the region of £255,000. The average ground rent payable was £50 billed yearly. The lease lapsed on 2 November 2094. Given that there were 70 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Mr and Mrs. H Cooper owned a first floor flat in Buckingham in October 2012. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparative residencies in Buckingham with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish in 2074. Considering the 50 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including legals.