Bucklesham leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Bucklesham will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Bucklesham with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
Last Spring Ollie, started to get close to the 80-year threshold with the lease on his garden apartment in Bucklesham. Having purchased his home 19 years ago, the unexpired term was of no interest. Thankfully, he became aware that he needed to take action soon on Extending the lease. Ollie extended the lease just ahead of time last April. Ollie and the landlord who owned the flat above eventually settled on an amount of £5,000 . If the lease had descended to less than 80 years, the price would have increased by at least £850.
Last Autumn we were phoned by Mrs H Díaz , who purchased a garden apartment in Bucklesham in March 1995. The dilemma was if we could approximate the price would be for a 90 year lease extension. Identical premises in Bucklesham with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 collected every twelve months. The lease termination date was in 2095. Considering the 69 years remaining we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Last Winter we were contacted by Mr and Mrs. P Lewis , who was assigned a lease of a first floor flat in Bucklesham in July 2012. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Bucklesham with a long lease were valued around £216,000. The mid-range ground rent payable was £60 billed per annum. The lease expired on 15 April 2084. Given that there were 58 years left we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.