It’s an underpublicised truth that a Long Buckby residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Long Buckby property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining dips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Long Buckby will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies in Long Buckby with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Long Buckby,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Long Buckby valuers.
Evan was the the leasehold owner of a conversion apartment in Long Buckby on the market with a lease of a few days over 72 years outstanding. Evan on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Evan to invoke his statutory right. Evan procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last Christmas we were e-mailed by Dr Gemma Hernández , who took over the lease of a purpose-built apartment in Long Buckby in May 1998. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Long Buckby with an extended lease were in the region of £265,000. The average ground rent payable was £50 collected annually. The lease concluded in 2099. Taking into account 73 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2013 we were approached by Mrs Amy Davies who, having owned a one bedroom flat in Long Buckby in April 2002. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Long Buckby with a long lease were valued around £264,000. The mid-range amount of ground rent was £60 collected yearly. The lease finished in 2079. Considering the 53 years outstanding we estimated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including costs.