The market value of Leighton Buzzard leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than eighty years
Leasehold premises in Leighton Buzzard with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | 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. |
| Yorkshire Building Society | 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. |
Using our service gives you enhanced control over the value of your Leighton Buzzard leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jake, started to get close to the 80-year mark with the lease on his studio flat in Leighton Buzzard. Having bought his home two decades ago, the length of the lease was of no relevance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Jake extended the lease at the eleventh hour in July. Jake and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If the lease had fallen to less than 80 years, the sum would have escalated by at least £1,150.
Mr and Mrs. H Murphy moved into a one bedroom flat in Leighton Buzzard in September 1996. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative properties in Leighton Buzzard with an extended lease were valued about £260,000. The average amount of ground rent was £50 billed annually. The lease concluded in 2096. Having 72 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
In 2010 we were phoned by Mr Nathan Harris who, having completed a one bedroom apartment in Leighton Buzzard in November 1999. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical residencies in Leighton Buzzard with 100 year plus lease were valued about £256,600. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed on 21 April 2076. Considering the 52 years unexpired we approximated the compensation to the landlord for the lease extension to be between £41,800 and £48,400 exclusive of costs.