There is no doubt about it a leasehold property in Booker is a wasting asset as a result of the diminishing lease term. If the lease has, over 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. Most flat owners in Booker will qualify for this right; however a conveyancing solicitor will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Booker with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you enhanced 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold proprietor of a high value apartment in Booker on the market with a lease of a little over sixty years outstanding. Jacob informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were approached by Dr Phoebe Hernández who, having purchased a one bedroom flat in Booker in January 2007. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Similar properties in Booker with an extended lease were worth £275,000. The mid-range ground rent payable was £55 collected yearly. The lease finished in 2102. Having 77 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.
Mr Y Khan owned a garden flat in Booker in June 2001. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar properties in Booker with a long lease were valued about £183,600. The average amount of ground rent was £65 invoiced monthly. The lease finished on 16 August 2082. Having 57 years remaining we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.