The market value of Buckden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the remaining term is less than eighty years
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Buckden can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Buckden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Freddie, started to get close to the eighty-year mark with the lease on his one bedroom flat in Buckden. In buying his home two decades ago, the length of the lease was of minimal bearing. Luckily, he recognised he would imminently be paying an inflated amount for a lease extension. Freddie was able to extend his lease at the eleventh hour in June. Freddie and the freeholder via the management company subsequently agreed on a premium of £5,000 . If the lease had slid to less than eighty years, the figure would have escalated by a minimum £875.
Mr and Mrs. B Jackson took over the lease of a ground floor apartment in Buckden in March 1995. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Buckden with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease expired on 25 June 2101. Having 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.
In 2010 we were phoned by Mrs Bethan Harris who, having completed a ground floor apartment in Buckden in November 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Buckden with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 collected quarterly. The lease expired in 2090. Taking into account 65 years remaining we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including expenses.