With a domestic leasehold premises in Bucklesham, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are fewer than eighty years left. Leasehold owners in Bucklesham with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. Once a lease has fewer than 80 years left, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Bucklesham with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake Bucklesham 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.
Ollie was the the leasehold owner of a conversion apartment in Bucklesham being marketed with a lease of just over fifty eight years remaining. Ollie informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2012 we were e-mailed by Mr William Murphy who, having purchased a one bedroom flat in Bucklesham in March 2007. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar premises in Bucklesham with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected quarterly. The lease expired on 2 November 2097. Having 71 years remaining we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.
In 2013 we were e-mailed by Mr and Mrs. I Wood who, having took over the lease of a garden apartment in Bucklesham in August 2004. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable homes in Bucklesham with a long lease were in the region of £225,800. The average ground rent payable was £60 invoiced annually. The lease ran out on 24 July 2086. Taking into account 60 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 not including legals.