For anyone whose Bookham property is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bookham can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
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 procuring Bookham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy negotiations with the landlord of her studio flat in Bookham, Samantha commenced the lease extension process as the 80 year deadline was fast approaching. The legal work was finalised in May 2012. The landlord’s charges were kept to an absolute minimum.
Dr N Simon moved into a first floor flat in Bookham in June 2002. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative properties in Bookham with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 invoiced monthly. The lease end date was on 4 April 2098. Taking into account 73 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2009 we were contacted by Dr Callum Díaz who, having owned a one bedroom apartment in Bookham in September 2004. The question was if we could estimate the premium would be to prolong the lease by an additional years. Comparable properties in Bookham with an extended lease were worth £240,600. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish on 9 June 2087. Taking into account 62 years outstanding we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of legals.