Leighton Buzzard leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Leighton Buzzard tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Leighton Buzzard you would be well advised to see if your lease has between 70 and 90 years remaining. There are good reasons why a Leighton Buzzard flat owner with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
The conveyancers that we work with undertake Leighton Buzzard lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last Christmas Henry, started to get close to the eighty-year mark with the lease on his garden apartment in Leighton Buzzard. In buying his home 19 years ago, the length of the lease was of minimal significance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Henry extended the lease at the eleventh hour in July. Henry and the freeholder via the management company eventually agreed on sum of £5,000 . If he had missed the deadline, the figure would have gone up by at least £1,000.
In 2013 we were e-mailed by Dr L Davis who, having completed a ground floor apartment in Leighton Buzzard in May 1995. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Leighton Buzzard with a long lease were worth £225,400. The average amount of ground rent was £45 collected per annum. The lease lapsed on 4 February 2089. Given that there were 64 years as a residual term we estimated the premium to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of professional charges.
Last Spring we were e-mailed by Mr and Mrs. M Peterson , who acquired a purpose-built apartment in Leighton Buzzard in June 2010. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Leighton Buzzard with a long lease were worth £270,000. The average amount of ground rent was £55 collected per annum. The lease expired in 2100. Given that there were 75 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.