As the the remaining lease term of a Booker residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond 100 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Booker will meet the qualifying criteria; that being said a conveyancer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Booker,the lease extension solicitors 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.
Last Christmas Andrew, came precariously close to the 80-year mark with the lease on his studio flat in Booker. Having purchased his home twenty years previously, the unexpired term was of minimal concern. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Andrew extended the lease just under the wire last June. Andrew and the landlord ultimately settled on an amount of £5,000 . If he failed to meet the deadline, the figure would have escalated by at least £1,100.
In 2009 we were approached by Mr Matthew Harris who, having moved into a studio flat in Booker in April 2009. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable residencies in Booker with an extended lease were in the region of £256,600. The mid-range ground rent payable was £60 billed yearly. The lease elapsed on 19 April 2078. Given that there were 52 years unexpired we estimated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 not including legals.
Dr U Norbert was assigned a lease of a studio apartment in Booker in April 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative properties in Booker with 100 year plus lease were valued about £218,000. The mid-range ground rent payable was £45 collected yearly. The lease lapsed in 2089. Having 63 years unexpired we estimated the premium to the landlord to extend the lease to be between £17,100 and £19,800 plus expenses.