The only way is down when it comes to Booker lease terms. Booker properties that have a remaining term fewer than eighty years will reduce in market price at a rapid rate, and the cost of extending your lease will go up.
Leasehold properties in Booker with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Booker leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Evan was the the leasehold owner of a 2 bedroom apartment in Booker on the market with a lease of a few days over 59 years remaining. Evan informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Evan to exercise his statutory right. Evan procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
In 2009 we were called by Dr B Anderson who, having was assigned a lease of a ground floor apartment in Booker in November 2008. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable homes in Booker with an extended lease were in the region of £246,800. The average amount of ground rent was £60 invoiced annually. The lease end date was on 24 October 2075. Having 50 years outstanding we calculated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including legals.
Last month we were called by Mr and Mrs. Y Petit , who acquired a one bedroom flat in Booker in May 2006. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical properties in Booker with an extended lease were worth £203,200. The average amount of ground rent was £65 collected monthly. The lease ended on 20 November 2086. Given that there were 61 years unexpired we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus professional charges.