The only way is down when it comes to Booker lease terms. Booker leaseholds that have a residual term fewer than 80 years will reduce in value even faster, and the cost of extending your lease will increase.
Leasehold residencies in Booker with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Booker,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Booker valuers.
During the course of the last few months Liam, came seriously close to the eighty-year threshold with the lease on his one bedroom flat in Booker. Having purchased his home two decades ago, the lease term was of no relevance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Liam arranged for a lease extension just under the wire last September. Liam and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If the lease had gone below eighty years, the price would have increased by at least £925.
In 2010 we were approached by Mrs Mollie Wood who, having was assigned a lease of a studio apartment in Booker in April 2010. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar homes in Booker with a long lease were valued about £260,000. The mid-range ground rent payable was £50 collected monthly. The lease ran out on 3 February 2098. Given that there were 72 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Mrs Lydia Sánchez was assigned a lease of a one bedroom apartment in Booker in April 2007. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Booker with an extended lease were in the region of £256,600. The mid-range amount of ground rent was £60 billed yearly. The lease ran out in 2078. Taking into account 52 years outstanding we estimated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of costs.