The value of Buxton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is below than eighty years
Leasehold premises in Buxton with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Santander | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Engaging our service will provide you better control over the value of your Buxton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jude owned a 2 bedroom apartment in Buxton on the market with a lease of fraction over fifty eight years unexpired. Jude on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Jude to invoke his statutory right. Jude obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Last Summer we were phoned by Mr and Mrs. J Brooks , who purchased a purpose-built flat in Buxton in October 1999. The question was if we could approximate the premium could be to prolong the lease by ninety years. Identical properties in Buxton with 100 year plus lease were in the region of £257,800. The average amount of ground rent was £65 billed annually. The lease concluded on 8 August 2091. Having 65 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus costs.
In 2012 we were phoned by Mr and Mrs. G Cooper who, having took over the lease of a garden flat in Buxton in July 2002. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable flats in Buxton with a long lease were in the region of £191,400. The average ground rent payable was £55 billed every twelve months. The lease ended on 16 June 2080. Considering the 54 years left we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of legals.