Unfortunately that a Boscastle residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Boscastle property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining drops under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Boscastle will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 75 years plus the term of the mortgage at the outset 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. |
Using our service will provide you enhanced control over the value of your Boscastle leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the freeholder of her studio apartment in Boscastle, Katie commenced the lease extension process as the eighty year deadline was rapidly coming. The legal work completed in January 2011. The landlord’s fees were negotiated to below 450 GBP.
Mr L Bell owned a one bedroom flat in Boscastle in April 2007. The dilemma was if we could approximate the premium could be to extend the lease by a further 90 years. Identical properties in Boscastle with a long lease were worth £210,000. The average ground rent payable was £50 billed quarterly. The lease termination date was on 20 June 2106. Having 80 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
Mr and Mrs. G Moore was assigned a lease of a one bedroom flat in Boscastle in November 2007. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Identical properties in Boscastle with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease terminated in 2095. Given that there were 69 years left we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.