Buntingford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Buntingford residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Buntingford you would be well advised to investigate if your lease has between 70 and 90 years left. There are good reasons why a Buntingford leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Buntingford can be a difficult process. We recommend you procure professional help from a conveyancer and valuer 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 procuring Buntingford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Lucas, came perilously near to the eighty-year mark with the lease on his basement apartment in Buntingford. In buying his home two decades ago, the lease term was of minimal relevance. Thankfully, he recognised he needed to take action soon on a lease extension. Lucas arranged for a lease extension at the eleventh hour in September. Lucas and the freeholder subsequently settled on an amount of £5,500 . If the lease had slipped below eighty years, the sum would have gone up by at least £1,075.
Last Spring we were contacted by Ms D Bernard , who owned a garden flat in Buntingford in September 1999. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Similar flats in Buntingford with 100 year plus lease were in the region of £210,600. The average amount of ground rent was £45 billed annually. The lease lapsed on 4 April 2088. Given that there were 62 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including expenses.
Last Christmas we were called by Mr Oscar Sharif , who acquired a first floor flat in Buntingford in September 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Buntingford with an extended lease were worth £265,000. The average amount of ground rent was £50 billed monthly. The lease came to a finish in 2099. Considering the 73 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.