Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Bootle. Inevitably, the length of lease left shortens as time goes by. This is often ignored and only becomes a problem when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Bootle have the right to extend the lease for an additional ninety years under legislation. Please give due attention before putting off your Bootle lease extension. Holding off that expense now simply increases the price you will eventually incur for a lease extension
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 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 | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Bootle,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bootle valuers.
Max owned a high value apartment in Bootle being marketed with a lease of fraction over sixty years left. Max on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Winter we were approach by Dr U Kelly , who acquired a purpose-built apartment in Bootle in October 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable premises in Bootle with 100 year plus lease were worth £270,000. The average ground rent payable was £55 invoiced monthly. The lease expiry date was on 14 February 2100. Having 75 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Last month we were contacted by Mr and Mrs. M Garcia , who moved into a one bedroom apartment in Bootle in March 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Similar flats in Bootle with 100 year plus lease were in the region of £173,800. The mid-range ground rent payable was £60 collected monthly. The lease concluded on 3 June 2080. Considering the 55 years remaining we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.