It’s a harsh truth that a Buckley residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Buckley property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Buckley will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle 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.
Lucas owned a high value flat in Buckley being marketed with a lease of fraction over 59 years unexpired. Lucas on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Lucas to exercise his statutory right. Lucas procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Last July we were approach by Mr Y Carter , who bought a one bedroom apartment in Buckley in November 2000. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparable residencies in Buckley with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 invoiced annually. The lease finished in 2083. Considering the 57 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus expenses.
Last Summer we were contacted by Mr and Mrs. S Bailey , who owned a studio apartment in Buckley in March 2002. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative flats in Buckley with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 billed yearly. The lease finished on 17 April 2103. Taking into account 77 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.