The re-sale value of a leasehold property in Buxton depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the lease extension process when a lease still has 82 years to run so that a lease extension can be concluded in advance of the 80 year mark. Current legislation enables Buxton qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Buxton with in excess of one hundred years left on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Buxton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Buxton valuers.
Stanley was the the leasehold proprietor of a conversion flat in Buxton being sold with a lease of just over 72 years remaining. Stanley informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Stanley to invoke his statutory right. Stanley obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last year we were e-mailed by Ms Ashleigh Clarke , who completed a studio flat in Buxton in October 2008. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Similar properties in Buxton with a long lease were in the region of £300,000. The average ground rent payable was £50 collected yearly. The lease lapsed on 8 November 2101. Having 75 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Last Christmas we were phoned by Mr and Mrs. S Morris , who took over the lease of a ground floor apartment in Buxton in February 2005. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical residencies in Buxton with 100 year plus lease were in the region of £250,400. The mid-range ground rent payable was £65 invoiced quarterly. The lease ended on 18 June 2090. Given that there were 64 years outstanding we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of expenses.