The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Bourton on the Water may extend the lease for an additional ninety years under statute. Please think carefully before delaying your Bourton on the Water lease extension. Putting off that expense now simply escalates the premium you will eventually be required to pay for a lease extension.
Leasehold residencies in Bourton on the Water with over 100 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
Lease extensions in Bourton on the Water can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bourton on the Water lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Caleb owned a 2 bedroom apartment in Bourton on the Water on the market with a lease of fraction over fifty eight years unexpired. Caleb informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last Winter we were called by Ms Y Norbert , who purchased a first floor apartment in Bourton on the Water in January 1997. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable flats in Bourton on the Water with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease termination date was on 21 February 2105. Having 80 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
Mr and Mrs. Y Cooper moved into a one bedroom flat in Bourton on the Water in January 1996. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical homes in Bourton on the Water with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 invoiced per annum. The lease came to a finish on 10 August 2085. Considering the 60 years left we estimated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of expenses.