When it comes to long leasehold property in Booker, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Leasehold owners in Booker with a lease approaching 81 years left should seriously consider extending it as soon as possible. When the lease term has below eighty years outstanding, under the current statute the freeholder can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Booker with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Booker can be a difficult process. We recommend you obtain guidance from a conveyancer 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 in-depth market knowledge dealing with Booker lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her first floor flat in Booker, Imogen started the lease extension process just as her lease was nearing the crucial eighty-year mark. The transaction was concluded in June 2012. The landlord’s fees were restricted to under 700 pounds.
In 2011 we were approached by Ms Holly Davis who, having took over the lease of a one bedroom flat in Booker in February 1995. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Similar homes in Booker with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 invoiced annually. The lease terminated on 12 June 2082. Having 56 years remaining we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of fees.
Mr and Mrs. S Torres bought a ground floor flat in Booker in November 2004. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative premises in Booker with 100 year plus lease were in the region of £237,600. The average amount of ground rent was £45 collected yearly. The lease lapsed on 7 May 2093. Considering the 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of legals.