Leighton Buzzard residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold properties in Leighton Buzzard with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Leighton Buzzard can be a difficult process. We recommend you get professional help from a lawyer and valuer 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 dealing with Leighton Buzzard lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jude was the the leasehold owner of a studio apartment in Leighton Buzzard being sold with a lease of just over sixty years remaining. Jude informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jude to exercise his statutory right. Jude obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
In 2012 we were phoned by Mr Michael Murphy who, having moved into a studio flat in Leighton Buzzard in January 2011. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Similar flats in Leighton Buzzard with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 collected monthly. The lease concluded in 2105. Taking into account 79 years outstanding we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.
In 2010 we were contacted by Dr Ashleigh González who, having moved into a one bedroom apartment in Leighton Buzzard in April 2007. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative flats in Leighton Buzzard with 100 year plus lease were valued about £198,400. The average amount of ground rent was £65 billed yearly. The lease finished on 23 March 2085. Taking into account 59 years remaining we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus legals.