It’s an underpublicised certainty that a Buckley residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Buckley property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be due. Most leasehold owners in Buckley will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Buckley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Buckley valuers.
Last October Oliver, came dangerously close to the eighty-year threshold with the lease on his ground floor apartment in Buckley. Having purchased his home two decades ago, the length of the lease was of minimal bearing. Luckily, he noticed he would soon be paying way over the odds for a lease extension. Oliver arranged for a lease extension just in the nick of time last July. Oliver and the freeholder via the management company ultimately settled on the final figure of £5,500 . If the lease had slipped to less than eighty years, the figure would have escalated by a minimum £875.
Last Christmas we were approach by Dr Y Johnson , who was assigned a lease of a newly refurbished apartment in Buckley in April 2009. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable residencies in Buckley with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 collected annually. The lease came to a finish on 17 June 2101. Considering the 75 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Dr Caitlin Evans owned a recently refurbished flat in Buckley in November 1997. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Buckley with an extended lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out on 22 February 2090. Having 64 years unexpired we estimated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of costs.