Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Buckley. Clearly, the term of lease remaining shortens over time. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Buckley have the right to extend the lease for a further 90 years under Leasehold Reform legislation. You should give careful deliberation before putting off your Buckley lease extension. Putting off that expense now simply increases the price you will ultimately incur to extend your lease
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Engaging our service will provide you enhanced control over the value of your Buckley leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jasper was the the leasehold owner of a conversion apartment in Buckley being sold with a lease of a few days over sixty years unexpired. Jasper informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Jasper to invoke his statutory right. Jasper procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. C Mercier took over the lease of a purpose-built flat in Buckley in September 2000. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative premises in Buckley with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 collected per annum. The lease terminated on 17 March 2095. Given that there were 70 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.
Mr and Mrs. G Scott moved into a first floor apartment in Buckley in October 2003. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in Buckley with a long lease were in the region of £223,400. The average amount of ground rent was £60 invoiced per annum. The lease end date was on 4 October 2084. Having 59 years left we estimated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 not including legals.