Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Buckley. Clearly, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Buckley have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. You should give careful consideration before putting off your Buckley lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
Regardless of whether you are a tenant or a landlord in Buckley,the lease extension lawyers that we work with will always be happy 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.
Freddie owned a high value apartment in Buckley on the market with a lease of fraction over 59 years left. Freddie on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Freddie to invoke his statutory right. Freddie procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. K Flores completed a studio flat in Buckley in November 2007. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative homes in Buckley with 100 year plus lease were valued about £216,000. The average ground rent payable was £60 collected yearly. The lease concluded in 2083. Considering the 58 years left we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
In 2012 we were phoned by Dr U Kelly who, having was assigned a lease of a ground floor apartment in Buckley in February 2005. We are asked if we could estimate the price would be to prolong the lease by an additional years. Similar properties in Buckley with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 5 September 2103. Given that there were 78 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.