Unfortunately that a Bookham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Bookham property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Bookham will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Bookham with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Bookham,the lease extension experts 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 Bookham valuers.
Finn owned a studio apartment in Bookham being sold with a lease of fraction over 59 years unexpired. Finn informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Finn to invoke his statutory right. Finn procured expert advice and secured an acceptable deal informally and sell the property.
Last Spring we were approach by Mr Ethan Mercier , who owned a recently refurbished apartment in Bookham in July 2011. The question was if we could estimate the price could be to extend the lease by ninety years. Comparative residencies in Bookham with 100 year plus lease were valued about £265,200. The average ground rent payable was £65 billed per annum. The lease elapsed in 2092. Having 66 years remaining we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 plus legals.
Last Summer we were approach by Mr and Mrs. I Flores , who completed a purpose-built apartment in Bookham in January 2000. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparable flats in Bookham with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 collected quarterly. The lease came to a finish in 2081. Having 55 years remaining we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including legals.