Bootle residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold properties in Bootle with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Bootle leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Ben, started to get near to the eighty-year threshold with the lease on his first floor apartment in Bootle. In buying his property 18 years previously, the unexpired term was of little interest. As luck would have it, he became aware that he would imminently be paying way over the odds for Extending the lease. Ben extended the lease at the eleventh hour last July. Ben and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If the lease had gone lower than 80 years, the sum would have escalated by at least £1,075.
Mr and Mrs. K Morris owned a recently refurbished apartment in Bootle in November 2010. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable residencies in Bootle with a long lease were in the region of £280,000. The average ground rent payable was £55 invoiced quarterly. The lease came to a finish on 23 June 2102. Taking into account 77 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
Mr and Mrs. F Wright took over the lease of a one bedroom apartment in Bootle in June 1999. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative premises in Bootle with a long lease were in the region of £183,600. The mid-range ground rent payable was £65 billed annually. The lease end date was in 2082. Taking into account 57 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus legals.