The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Booker may extend the lease for an additional ninety years under legislation. Do give careful consideration before delaying your Booker lease extension. Shelving that expense now simply escalates the price you will ultimately be required to pay for a lease extension.
Leasehold premises in Booker with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancers that we work with handle Booker lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Jackson owned a studio apartment in Booker on the market with a lease of just over 61 years remaining. Jackson on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2011 we were e-mailed by Mr and Mrs. G Lee who, having acquired a studio flat in Booker in October 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable properties in Booker with an extended lease were worth £265,000. The average amount of ground rent was £50 collected quarterly. The lease ended in 2100. Taking into account 74 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
Last year we were called by Mr and Mrs. F Lefèvre , who completed a garden apartment in Booker in September 1999. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Booker with an extended lease were in the region of £166,400. The average ground rent payable was £60 billed annually. The lease terminated on 12 November 2080. Given that there were 54 years left we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of fees.