The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Buckley have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Buckley lease extension. Shelving that expense now simply increases the amount you will ultimately be required to pay for a lease extension.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The lawyers that we work with undertake Buckley 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.
Two years ago Hunter, started to get near to the 80-year mark with the lease on his purpose- built apartment in Buckley. In buying his flat 18 years previously, the unexpired term was of minimal significance. As luck would have it, he noticed he would imminently be paying way over the odds for a lease extension. Hunter was able to extend his lease just under the wire last March. Hunter and the freeholder via the managing agents eventually settled on a premium of £5,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £850.
Last Autumn we were contacted by Dr O Stewart , who completed a purpose-built flat in Buckley in July 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Buckley with 100 year plus lease were worth £295,000. The average ground rent payable was £45 collected annually. The lease came to a finish on 27 November 2099. Considering the 74 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
Last Winter we were approach by Dr E Rose , who took over the lease of a purpose-built apartment in Buckley in February 2009. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparable properties in Buckley with a long lease were worth £243,000. The average amount of ground rent was £65 collected per annum. The lease lapsed in 2088. Considering the 63 years as a residual term we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of costs.