It’s a harsh certainty that a Bootle residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Bootle property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Bootle will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Bootle leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Archie, came precariously close to the 80-year threshold with the lease on his studio apartment in Bootle. Having purchased his flat 18 years ago, the unexpired term was of no concern. As luck would have it, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Archie was able to extend his lease at the eleventh hour last August. Archie and the landlord eventually agreed on a premium of £5,000 . If the lease had dipped lower than eighty years, the figure would have gone up by a minimum £900.
Dr A Davies bought a one bedroom apartment in Bootle in June 2004. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar homes in Bootle with 100 year plus lease were worth £173,800. The mid-range amount of ground rent was £60 billed per annum. The lease ran out in 2081. Given that there were 55 years unexpired we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.
Last June we were called by Dr A Robinson , who bought a garden apartment in Bootle in August 1995. The question was if we could estimate the price could be to prolong the lease by ninety years. Identical residencies in Bootle with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed per annum. The lease expired in 2092. Considering the 66 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.