Unfortunately that a Buxton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Buxton property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term dips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Buxton will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service gives you enhanced control over the value of your Buxton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Harry, came dangerously close to the eighty-year mark with the lease on his one bedroom apartment in Buxton. In buying his property two decades ago, the length of the lease was of little importance. Fortunately, he became aware that he needed to take action soon on a lease extension. Harry arranged for a lease extension just in the nick of time in January. Harry and the landlord in the end agreed on an amount of £5,000 . If the lease had fallen lower than 80 years, the figure would have escalated by a minimum £1,000.
Mr and Mrs. V López completed a purpose-built apartment in Buxton in October 1998. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Buxton with an extended lease were worth £240,600. The average amount of ground rent was £60 billed quarterly. The lease finished in 2087. Taking into account 62 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus fees.
Ms Sophie Cox completed a studio flat in Buxton in March 2000. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar properties in Buxton with an extended lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2076. Given that there were 51 years left we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of costs.