Buckley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Buckley tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Buckley you really ought to check if your lease has between 70 and 90 years remaining. There are good reasons why a Buckley leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Buckley with in excess of one hundred years left on the lease are sometimes regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Buckley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Buckley valuers.
Subsequent to protracted discussions with the landlord of her purpose-built apartment in Buckley, Sian commenced the lease extension process just as her lease was nearing the critical 80-year threshold. The lease extension completed in October 2008. The landlord’s fees were restricted to below 650 GBP.
Last Spring we were approach by Ms Lydia Laurent , who bought a one bedroom apartment in Buckley in November 2006. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Identical homes in Buckley with a long lease were valued about £205,000. The average amount of ground rent was £50 invoiced monthly. The lease expired in 2105. Given that there were 79 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Last Christmas we were approach by Dr Dexter Morgan , who completed a one bedroom flat in Buckley in June 2002. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Buckley with an extended lease were worth £275,000. The average ground rent payable was £65 billed per annum. The lease expired on 1 April 2094. Given that there were 68 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.