With a residential leasehold property in Bucklesham, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years remaining. Leasehold owners in Bucklesham with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. When a lease has less than 80 years remaining, under the relevant legislation the landlord is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 lawyers 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 conveyancer we work with provide it.
Archie was the the leasehold proprietor of a conversion apartment in Bucklesham being sold with a lease of a little over 72 years left. Archie informally approached his landlord 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 subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Archie to exercise his statutory right. Archie obtained expert advice and secured satisfactory deal informally and readily saleable.
Last Spring we were phoned by Mr and Mrs. T Martínez , who purchased a basement apartment in Bucklesham in November 2008. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparative flats in Bucklesham with an extended lease were in the region of £260,200. The average amount of ground rent was £65 billed every twelve months. The lease ran out on 3 March 2091. Considering the 66 years outstanding we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of fees.
In 2011 we were approached by Dr Y Stewart who, having completed a studio flat in Bucklesham in September 2011. The question was if we could approximate the premium could be to prolong the lease by an additional years. Comparable residencies in Bucklesham with a long lease were worth £198,800. The mid-range ground rent payable was £55 invoiced quarterly. The lease lapsed in 2080. Given that there were 55 years outstanding we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of costs.