With a residential leasehold premises in Leighton Buzzard, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years remaining. Anyone in Leighton Buzzard with a lease nearing 81 years remaining should seriously think of extending it without delay. Once a lease has below 80 years outstanding, under the relevant Act the landlord can calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Leighton Buzzard with in excess of 100 years left on the lease are often referred to as ‘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 freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Leighton Buzzard can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Edward was the the leasehold proprietor of a studio flat in Leighton Buzzard being marketed with a lease of fraction over 72 years remaining. Edward on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Edward to exercise his statutory right. Edward obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Last year we were approach by Mr Alexander Carter , who was assigned a lease of a studio flat in Leighton Buzzard in October 1995. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar homes in Leighton Buzzard with a long lease were valued around £261,600. The mid-range amount of ground rent was £60 invoiced annually. The lease came to a finish on 4 February 2078. Taking into account 52 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including legals.
Last Christmas we were called by Mr and Mrs. E Walker , who moved into a garden apartment in Leighton Buzzard in January 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Leighton Buzzard with a long lease were in the region of £218,000. The average amount of ground rent was £45 billed quarterly. The lease terminated in 2089. Given that there were 63 years remaining we calculated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including fees.