The market value of a leasehold property in Bootle is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded prior to the eighty year threshold. Leasehold Reform legislation entitles Bootle qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a peppercorn rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Bootle with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
After unsuccessful correspondence with the landlord of her leasehold flat in Bootle, Isabelle commenced the lease extension process just as her lease was coming close to the critical eighty-year deadline. The lease extension completed in March 2014. The landlord’s charges were kept to an absolute minimum.
Mrs Courtney Murphy owned a basement flat in Bootle in March 2012. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar homes in Bootle with 100 year plus lease were valued around £183,600. The average amount of ground rent was £65 invoiced monthly. The lease terminated on 8 February 2081. Given that there were 57 years as a residual term we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.
Ms Sarah Williams owned a one bedroom flat in Bootle in June 2011. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical homes in Bootle with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed on 22 January 2092. Taking into account 68 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.