Bookham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Bookham tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Bookham you would be well advised to see if your lease has between seventy and ninety years left. There are compelling reasons why a Bookham flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety 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 |
|---|---|
| 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. |
| 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. |
Retaining our service gives you better control over the value of your Bookham leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her basement apartment in Bookham, Grace commenced the lease extension process just as her lease was approaching the critical eighty-year deadline. The transaction was concluded in November 2011. The freeholder’s costs were restricted to below 500 pounds.
Mr and Mrs. P Murphy owned a one bedroom apartment in Bookham in October 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Bookham with 100 year plus lease were worth £223,400. The mid-range ground rent payable was £60 billed yearly. The lease end date was on 11 June 2085. Given that there were 59 years unexpired we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including legals.
Last Summer we were phoned by Dr C Fournier , who took over the lease of a one bedroom apartment in Bookham in September 1996. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable residencies in Bookham with a long lease were valued around £205,000. The average ground rent payable was £50 invoiced every twelve months. The lease ran out on 17 July 2105. Having 79 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.