The market 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 increase significantly once the remaining term is less than 80 years
Leasehold premises in Buxton with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Retaining our service gives you better control over the value of your Buxton leasehold, as your property will be more valuable and marketable in relation to the 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.
Off the back of protracted discussions with the landlord of her basement flat in Buxton, Rhiannon started the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was finalised in February 2006. The landlord’s fees were restricted to about 500 pounds.
Mr and Mrs. I David bought a first floor apartment in Buxton in June 2004. The question was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative residencies in Buxton with a long lease were worth £198,800. The average ground rent payable was £55 invoiced every twelve months. The lease finished in 2080. Taking into account 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus legals.
Mr and Mrs. L Watson moved into a garden flat in Buxton in February 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Buxton with an extended lease were valued around £300,000. The average amount of ground rent was £50 billed every twelve months. The lease expired in 2100. Taking into account 75 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.