When it comes to residential leasehold premises in Boscastle, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than 80 years left. Leasehold owners in Boscastle with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has under 80 years left, under the current Act the landlord is entitled to calculate and levy a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Boscastle with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service gives you better control over the value of your Boscastle leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold proprietor of a studio flat in Boscastle being sold with a lease of a little over 61 years remaining. Jacob informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and secured satisfactory deal informally and readily saleable.
In 2011 we were e-mailed by Dr Michael Morris who, having was assigned a lease of a garden apartment in Boscastle in June 1999. The dilemma was if we could estimate the price would be for a 90 year lease extension. Identical properties in Boscastle with 100 year plus lease were worth £300,000. The average ground rent payable was £50 invoiced annually. The lease ran out in 2100. Considering the 75 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Last Autumn we were approach by Mr I Norbert , who was assigned a lease of a ground floor apartment in Boscastle in January 1995. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Identical flats in Boscastle with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 billed monthly. The lease termination date was in 2089. Having 64 years left we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.