Bookham residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Bookham can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bookham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy discussions with the freeholder of her one bedroom flat in Bookham, Phoebe initiated the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction completed in April 2008. The freeholder’s costs were restricted to below 550 pounds.
Last month we were contacted by Dr C Thomas , who purchased a basement apartment in Bookham in March 2008. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical premises in Bookham with a long lease were valued about £275,000. The average amount of ground rent was £65 billed per annum. The lease terminated in 2094. Considering the 68 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
Ms D Nelson moved into a studio flat in Bookham in July 1995. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar premises in Bookham with a long lease were worth £208,600. The mid-range ground rent payable was £60 collected quarterly. The lease concluded in 2083. Having 57 years unexpired we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus costs.