Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Booker. Clearly, the period of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Booker have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give due attention before putting off your Booker lease extension. Putting off the cost now only increases the price you will eventually have to pay for a lease extension
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Booker can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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 Booker lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Kian, came very near to the 80-year threshold with the lease on his garden flat in Booker. Having bought his flat two decades ago, the length of the lease was of little relevance. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Kian extended the lease at the eleventh hour last March. Kian and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If he not met the deadline, the figure would have escalated by a minimum £1,150.
Last Winter we were contacted by Dr I Murphy , who acquired a first floor flat in Booker in January 1999. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparable premises in Booker with 100 year plus lease were valued around £264,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease ran out on 25 May 2079. Given that there were 53 years left we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of expenses.
In 2014 we were approached by Mr and Mrs. H Ali who, having purchased a ground floor flat in Booker in February 2005. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical properties in Booker with an extended lease were valued around £220,400. The average amount of ground rent was £45 invoiced quarterly. The lease finished in 2090. Given that there were 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 not including costs.