Long Buckby residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Long Buckby 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 conveyancing solicitor we work with provide it.
Half a year ago Tyler, started to get near to the eighty-year mark with the lease on his basement apartment in Long Buckby. In buying his property 18 years ago, the lease term was of minimal importance. As luck would have it, he realised he needed to take steps soon on a lease extension. Tyler arranged for a lease extension just in the nick of time in June. Tyler and the landlord who owned the flat above subsequently agreed on the final figure of £5,500 . If he failed to meet the deadline, the sum would have escalated by a minimum £875.
In 2009 we were called by Dr Elizabeth Rogers who, having took over the lease of a ground floor apartment in Long Buckby in May 2006. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Similar flats in Long Buckby with a long lease were worth £285,000. The average ground rent payable was £55 billed per annum. The lease expired on 26 March 2106. Considering the 80 years left we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2009 we were called by Dr U Roux who, having took over the lease of a purpose-built apartment in Long Buckby in May 2006. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative premises in Long Buckby with a long lease were in the region of £200,800. The average amount of ground rent was £65 invoiced annually. The lease concluded on 20 September 2086. Having 60 years left we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 plus expenses.