Booker leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Booker enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Booker you would be well advised to check if your lease has between 70 and 90 years left. There are compelling reasons why a Booker leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Booker,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Booker valuers.
Subsequent to unsuccessful discussions with the landlord of her leasehold apartment in Booker, Isabel commenced the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was concluded in August 2005. The freeholder’s fees were negotiated to slightly above six hundred GBP.
Last Winter we were phoned by Mr Leon Lefebvre , who acquired a garden apartment in Booker in February 2009. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Similar homes in Booker with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease concluded in 2102. Considering the 76 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Last Spring we were e-mailed by Mr and Mrs. D Martinez , who purchased a basement apartment in Booker in July 2012. The question was if we could approximate the price would be for a 90 year extension to my lease. Identical residencies in Booker with an extended lease were worth £176,200. The mid-range ground rent payable was £65 collected annually. The lease concluded in 2082. Given that there were 56 years as a residual term we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including expenses.