Booker residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
Leasehold residencies in Booker with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 terms of lease length should you want 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.
Andrew was the the leasehold proprietor of a 2 bedroom apartment in Booker being marketed with a lease of just over 59 years remaining. Andrew informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Andrew to invoke his statutory right. Andrew procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2011 we were contacted by Mr and Mrs. A Smith who, having took over the lease of a ground floor apartment in Booker in January 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Booker with an extended lease were in the region of £250,000. The average amount of ground rent was £50 invoiced annually. The lease elapsed in 2094. Having 69 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Last Spring we were phoned by Mr Teddy Davies , who acquired a purpose-built flat in Booker in May 2008. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Booker with a long lease were valued around £285,000. The average amount of ground rent was £55 collected per annum. The lease ended in 2105. Having 80 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.