Buckley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Buckley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Buckley you really ought to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Buckley with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Buckley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Buckley valuers.
Jake was the the leasehold owner of a high value flat in Buckley on the market with a lease of just over 61 years left. Jake informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Jake to invoke his statutory right. Jake procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Last May we were e-mailed by Dr Caitlin Bell , who was assigned a lease of a first floor flat in Buckley in October 2012. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable flats in Buckley with a long lease were valued about £181,600. The average amount of ground rent was £55 invoiced every twelve months. The lease ended in 2078. Taking into account 52 years remaining we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.
Mr and Mrs. K García purchased a first floor apartment in Buckley in June 2008. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Comparative properties in Buckley with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease termination date was on 24 October 2098. Taking into account 72 years remaining we calculated the premium to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of costs.