As the the remaining lease term of a Buckden domestic lease diminished so does its value and therefore the value of your property. Where the lease has, over one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Buckden will meet the qualifying criteria; nevertheless a lawyer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Buckden,the lease extension experts 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 Buckden valuers.
Off the back of unsuccessful discussions with the freeholder of her first floor apartment in Buckden, Abbie commenced the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work completed in November 2009. The freeholder’s costs were kept to an absolute minimum.
Dr Lucy Vincent purchased a ground floor apartment in Buckden in April 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Buckden with an extended lease were valued around £225,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease finished in 2085. Considering the 60 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of fees.
Mr and Mrs. Y Bertrand bought a purpose-built apartment in Buckden in July 2000. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Similar residencies in Buckden with a long lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced annually. The lease terminated in 2105. Considering the 80 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.