As the length of the unexpired term of a Bucknall residential lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Bucknall will meet the qualifying criteria; however a conveyancer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 Bucknall 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of protracted correspondence with the freeholder of her first floor flat in Bucknall, Sophia started the lease extension process just as the lease was approaching the critical eighty-year deadline. The legal work was concluded in March 2011. The freeholder’s fees were negotiated to under 450 pounds.
In 2011 we were contacted by Dr Michael Wood who, having completed a first floor apartment in Bucknall in September 2008. The question was if we could estimate the premium could be to prolong the lease by an additional years. Identical homes in Bucknall with a long lease were valued around £295,000. The mid-range ground rent payable was £45 collected per annum. The lease finished on 14 August 2100. Considering the 74 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Mr J Harris moved into a basement flat in Bucknall in January 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparable properties in Bucknall with 100 year plus lease were in the region of £243,000. The average amount of ground rent was £65 invoiced every twelve months. The lease ended on 4 March 2089. Given that there were 63 years outstanding we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus expenses.