Buckley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Buckley tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Buckley you would be well advised to check if your lease has between 70 and ninety 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 an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
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 lawyer we work with provide it.
Trailing unsuccessful correspondence with the freeholder of her purpose-built flat in Buckley, Victoria initiated the lease extension process as the eighty year mark was swiftly coming. The legal work was concluded in June 2013. The freeholder’s costs were restricted to less than 450 pounds.
Mrs C Vincent bought a studio flat in Buckley in June 1997. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar homes in Buckley with a long lease were valued around £290,000. The average amount of ground rent was £45 billed per annum. The lease terminated in 2099. Considering the 73 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
In 2010 we were phoned by Mr Alex Adams who, having took over the lease of a garden flat in Buckley in September 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Buckley with 100 year plus lease were valued around £240,600. The average ground rent payable was £60 billed per annum. The lease expired in 2088. Taking into account 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including expenses.