Chances are that where you own a flat in Bootle you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property 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. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Bootle,the lease extension lawyers 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 Bootle valuers.
Half a year ago Aaron, started to get near to the 80-year threshold with the lease on his purpose- built flat in Bootle. Having bought his flat 19 years ago, the length of the lease was of no relevance. Luckily, he recognised he would soon be paying an escalated premium for a lease extension. Aaron extended the lease just under the wire in January. Aaron and the freeholder subsequently agreed on sum of £6,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £975.
In 2013 we were called by Mr and Mrs. S Díaz who, having was assigned a lease of a one bedroom apartment in Bootle in June 2000. The question was if we could estimate the price would be to extend the lease by a further 90 years. Similar flats in Bootle with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease concluded on 5 September 2105. Having 80 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
Last month we were phoned by Ms R André , who acquired a ground floor flat in Bootle in August 1998. The dilemma was if we could estimate the price could be for a ninety year lease extension. Similar flats in Bootle with a long lease were valued about £200,800. The mid-range ground rent payable was £65 billed yearly. The lease terminated in 2085. Taking into account 60 years unexpired we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including legals.