With a residential leasehold premises in Bootle, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Residents in Bootle with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has less than eighty years outstanding, under the current statute the landlord is entitled to calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years remaining 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 ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with undertake Bootle 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.
16 months ago Matthew, started to get close to the eighty-year mark with the lease on his garden flat in Bootle. In buying his property two decades ago, the length of the lease was of no significance. Fortunately, he became aware that he needed to take action soon on a lease extension. Matthew extended the lease at the eleventh hour last July. Matthew and the landlord in the end agreed on an amount of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £1,075.
Mr and Mrs. W Bailey took over the lease of a purpose-built flat in Bootle in June 2005. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative flats in Bootle with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease came to a finish in 2099. Considering the 73 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
In 2011 we were e-mailed by Ms R Simon who, having acquired a ground floor flat in Bootle in November 2009. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative premises in Bootle with an extended lease were worth £264,000. The mid-range ground rent payable was £60 invoiced yearly. The lease expired in 2079. Taking into account 53 years remaining we approximated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of expenses.