Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Bucknall. Inevitably, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Bucknall have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give careful deliberation before delaying your Bucknall lease extension. Putting off that expense now likely increases the price you will ultimately incur to extend your lease
Leasehold properties in Bucknall with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bucknall can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bucknall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Lewis, came perilously close to the 80-year threshold with the lease on his one bedroom apartment in Bucknall. Having bought his home two decades ago, the unexpired term was of minimal significance. Luckily, he became aware that he would soon be paying way over the odds for a lease extension. Lewis extended the lease at the eleventh hour in March. Lewis and the freeholder via the management company subsequently settled on a premium of £5,500 . If the lease had dropped to less than eighty years, the figure would have gone up by at least £975.
Mr Leo Morel moved into a garden flat in Bucknall in January 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Bucknall with 100 year plus lease were worth £265,200. The mid-range ground rent payable was £65 billed per annum. The lease ended in 2091. Considering the 66 years remaining we estimated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 not including legals.
Dr Sophia Ali took over the lease of a studio flat in Bucknall in October 2001. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative homes in Bucknall with an extended lease were in the region of £198,800. The average amount of ground rent was £55 billed annually. The lease expired on 9 July 2080. Given that there were 55 years remaining we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of costs.