The value of Booker leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you enhanced control over the value of your Booker leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Kai, started to get close to the eighty-year mark with the lease on his ground floor apartment in Booker. Having bought his flat 18 years previously, the length of the lease was of little importance. Luckily, he became aware that he would imminently be paying way over the odds for Extending the lease. Kai arranged for a lease extension at the eleventh hour in August. Kai and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had gone lower than eighty years, the price would have become more costly by a minimum £925.
Dr George Torres completed a garden flat in Booker in January 1997. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Identical homes in Booker with 100 year plus lease were valued about £285,000. The average ground rent payable was £55 collected annually. The lease lapsed in 2105. Considering the 79 years outstanding we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.
In 2014 we were phoned by Dr William Lewis who, having acquired a one bedroom flat in Booker in June 2011. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar flats in Booker with a long lease were valued around £193,400. The mid-range amount of ground rent was £65 collected per annum. The lease finished in 2085. Taking into account 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of fees.