Why you should commence your Booker lease extension

Why you should commence your Booker lease extension today:

A Booker leasehold property depreciates with the years remaining on the lease.

Unfortunately that a Booker residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Booker property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining falls under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Booker will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may not loan monies with a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Booker lease extension solicitors or enfranchisement solicitors

Lease extensions in Booker can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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.

Booker Lease Extension Case Studies:

Archie, Booker, Buckinghamshire,

Archie was the the leasehold proprietor of a conversion flat in Booker being marketed with a lease of just over sixty years unexpired. Archie informally contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Archie to exercise his statutory right. Archie procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.

Booker case:

In 2014 we were phoned by Mrs Amy Thompson who, having acquired a basement flat in Booker in May 1999. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative properties in Booker with a long lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease lapsed in 2101. Given that there were 75 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.

Booker case:

Ms Eleanor White moved into a ground floor apartment in Booker in February 2006. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable flats in Booker with 100 year plus lease were valued around £168,800. The mid-range amount of ground rent was £60 collected per annum. The lease came to a finish in 2081. Considering the 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.