When it comes to domestic leasehold premises in Buntingford, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Anyone in Buntingford with a lease approaching 81 years left should seriously consider extending it without delay. When the lease term has below 80 years outstanding, under the relevant legislation the landlord can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Buntingford with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Buntingford 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.
After protracted correspondence with the landlord of her one bedroom flat in Buntingford, Isabel commenced the lease extension process as the eighty year deadline was fast nearing. The transaction completed in September 2005. The landlord’s charges were restricted to less than 550 pounds.
In 2014 we were e-mailed by Mr Adam Gómez who, having bought a garden apartment in Buntingford in June 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Buntingford with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 billed every twelve months. The lease finished in 2096. Given that there were 71 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
In 2009 we were e-mailed by Dr Cameron Moore who, having owned a one bedroom apartment in Buntingford in July 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable flats in Buntingford with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 collected every twelve months. The lease terminated in 2076. Having 51 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 plus professional charges.