Boston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Boston tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Boston you must investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Nationwide Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Boston can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Boston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Arthur was the the leasehold owner of a 2 bedroom apartment in Boston being sold with a lease of a few days over fifty eight years left. Arthur informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Arthur to exercise his statutory right. Arthur obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2010 we were e-mailed by Dr Hunter Morel who, having acquired a one bedroom flat in Boston in May 2012. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical properties in Boston with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 collected quarterly. The lease ran out on 6 November 2096. Considering the 70 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2012 we were approached by Dr Eli Mercier who, having took over the lease of a garden flat in Boston in March 1997. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Identical premises in Boston with a long lease were in the region of £246,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed in 2076. Given that there were 50 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of fees.