Booker leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Booker enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Booker you would be well advised to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Booker,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Booker valuers.
Toby was the the leasehold proprietor of a conversion flat in Booker being marketed with a lease of a few days over fifty eight years unexpired. Toby informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Toby to exercise his statutory right. Toby obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Summer we were approach by Mr Kian Thompson , who was assigned a lease of a newly refurbished flat in Booker in June 1999. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Similar residencies in Booker with 100 year plus lease were valued about £254,200. The average amount of ground rent was £60 billed quarterly. The lease came to a finish in 2076. Having 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of costs.
Mr and Mrs. E Mitchell owned a purpose-built apartment in Booker in October 1995. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Identical residencies in Booker with an extended lease were in the region of £210,600. The average amount of ground rent was £45 invoiced per annum. The lease terminated on 25 October 2087. Considering the 62 years unexpired we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus fees.