Buxton residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancers that we work with undertake Buxton 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.
In recent months Omar, came seriously near to the 80-year mark with the lease on his first floor apartment in Buxton. In buying his flat twenty years previously, the unexpired term was of no importance. As luck would have it, he noticed he would soon be paying an escalated premium for Extending the lease. Omar arranged for a lease extension at the eleventh hour in September. Omar and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If he not met the deadline, the sum would have increased by at least £1,100.
In 2011 we were phoned by Mr and Mrs. A Baker who, having was assigned a lease of a one bedroom apartment in Buxton in July 2010. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar properties in Buxton with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 billed yearly. The lease finished in 2105. Having 79 years remaining we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
Mrs Rebecca King completed a purpose-built flat in Buxton in June 2010. The question was if we could approximate the price would be to prolong the lease by an additional years. Comparative properties in Buxton with a long lease were valued around £275,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease ended in 2094. Given that there were 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.