Booker leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Booker will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately 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 many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Booker 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 conveyancing solicitor we work with provide it.
During the course of the last few months Sam, started to get close to the 80-year mark with the lease on his first floor apartment in Booker. In buying his flat two decades ago, the length of the lease was of minimal significance. As luck would have it, he noticed he would imminently be paying way over the odds for Extending the lease. Sam was able to extend his lease just in the nick of time last September. Sam and the freeholder via the management company subsequently settled on an amount of £5,000 . If he had missed the deadline, the sum would have gone up by a minimum £900.
Dr Amber Bertrand purchased a studio apartment in Booker in September 1999. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Identical homes in Booker with a long lease were valued around £218,000. The average amount of ground rent was £45 invoiced quarterly. The lease concluded in 2088. Considering the 63 years unexpired we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including legals.
In 2009 we were approached by Mr W Lewis who, having bought a first floor apartment in Booker in June 2010. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical flats in Booker with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 billed annually. The lease expired on 27 June 2099. Given that there were 74 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.