Bookham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Bookham enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bookham you should investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Leeds Building Society | |
| Santander | |
| The Mortgage Works |
The conveyancing solicitors that we work with undertake Bookham 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 conveyancer we work with provide it.
After protracted discussions with the landlord of her basement apartment in Bookham, Kate initiated the lease extension process as the eighty year deadline was fast approaching. The transaction completed in March 2014. The landlord’s costs were restricted to a tad over 500 pounds.
In 2012 we were called by Mr and Mrs. N Girard who, having moved into a first floor apartment in Bookham in June 2010. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Similar flats in Bookham with 100 year plus lease were valued about £206,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded on 27 October 2082. Considering the 56 years left we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.
Last Summer we were e-mailed by Mr and Mrs. H Campbell , who moved into a studio flat in Bookham in July 1998. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Similar residencies in Bookham with a long lease were valued around £300,000. The average amount of ground rent was £50 invoiced annually. The lease ran out in 2102. Considering the 76 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.