The market value of Bootle leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 better control over the value of your Bootle leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jayden was the the leasehold proprietor of a 2 bedroom flat in Bootle on the market with a lease of a few days over sixty years outstanding. Jayden informally contacted his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert advice and secured satisfactory deal informally and sell the property.
Mr H Fournier acquired a garden flat in Bootle in June 2000. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical residencies in Bootle with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £55 invoiced monthly. The lease concluded on 28 May 2100. Having 74 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Last month we were approach by Mr V Moore , who took over the lease of a ground floor flat in Bootle in May 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Bootle with a long lease were in the region of £166,400. The mid-range ground rent payable was £60 collected yearly. The lease ran out in 2080. Taking into account 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of costs.