As the the remaining lease term of a Bootle residential lease diminished so does its value and therefore the value of your property. If the lease has, more than 99 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. Many flat owners in Bootle will meet the qualifying criteria; that being said a conveyancer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Bootle with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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.
Max was the the leasehold proprietor of a 2 bedroom apartment in Bootle being marketed with a lease of fraction over 59 years remaining. Max on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. 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 initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Max to exercise his statutory right. Max procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Mr Blake González acquired a first floor apartment in Bootle in March 2008. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical properties in Bootle with 100 year plus lease were valued around £264,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease elapsed in 2079. Having 53 years remaining we calculated the premium to the landlord for the lease extension to be within £37,100 and £42,800 plus professional charges.
Dr V Mercier acquired a studio flat in Bootle in March 2000. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Comparable residencies in Bootle with 100 year plus lease were worth £225,400. The average ground rent payable was £45 billed quarterly. The lease came to a finish in 2090. Taking into account 64 years remaining we calculated the premium to the landlord to extend the lease to be between £16,200 and £18,600 plus professional charges.