Top reasons for Bootle lease extension

Top reasons for lease extension now:

Increase your lease and increase your Bootle property value

Bootle leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Bootle tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Bootle you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold properties in Bootle with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not grant a mortgage with a short lease

Banks and building societies do not like short residential leases. You are likely to experience difficulties where you need to sell your flat in Bootle if the remaining lease term is under the criteria set by the majority of mortgage companies. Different lenders have varying requirements but generally they are looking for a minimum remaining lease term of 65 years.

Get in touch with one of our Bootle lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Bootle,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bootle valuers.

Bootle Lease Extension Case Studies:

Hugo, Bootle, Merseyside,

Hugo was the the leasehold owner of a high value flat in Bootle on the market with a lease of just over fifty eight years remaining. Hugo on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert advice and secured an acceptable deal informally and sell the flat.

Bootle case:

In 2009 we were called by Dr Y Rogers who, having moved into a one bedroom flat in Bootle in May 2000. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Similar homes in Bootle with a long lease were worth £275,000. The mid-range ground rent payable was £55 collected quarterly. The lease ended in 2103. Having 77 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.

Bootle case:

Last Summer we were approach by Mr and Mrs. Y Thompson , who was assigned a lease of a basement apartment in Bootle in March 1996. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical properties in Bootle with 100 year plus lease were valued around £183,600. The mid-range amount of ground rent was £65 billed annually. The lease finished on 19 June 2083. Considering the 57 years remaining we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.