Buckley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Buckley tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Buckley you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Buckley with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Buckley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Joshua was the the leasehold owner of a high value apartment in Buckley being marketed with a lease of just over fifty eight years outstanding. Joshua informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joshua to exercise his statutory right. Joshua procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.
In 2010 we were approached by Dr Lucas Martinez who, having completed a one bedroom apartment in Buckley in August 2001. The question was if we could estimate the premium could be for a ninety year lease extension. Identical properties in Buckley with an extended lease were valued about £257,800. The average amount of ground rent was £65 billed monthly. The lease came to a finish in 2091. Having 65 years unexpired we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus legals.
Last Autumn we were contacted by Dr C López , who completed a basement apartment in Buckley in June 2012. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical homes in Buckley with a long lease were valued about £191,400. The mid-range ground rent payable was £55 billed quarterly. The lease concluded in 2080. Given that there were 54 years unexpired we calculated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 not including legals.