It’s an underpublicised certainty that a Boston residential lease is a deteriorating 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 loss of value being disguised by increases in the Boston property prices.Once your lease nears 85ish years, you need to 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 slips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Boston will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. 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 lawyer for the duration of the formalities.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Boston can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Boston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eliot owned a high value apartment in Boston being sold with a lease of a little over 72 years left. Eliot informally approached his landlord being 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 £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Eliot to exercise his statutory right. Eliot procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr Jacob Smith took over the lease of a garden apartment in Boston in August 2004. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical homes in Boston with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 invoiced monthly. The lease terminated in 2101. Having 75 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Ms J Cooper bought a one bedroom flat in Boston in October 2009. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparative premises in Boston with an extended lease were worth £168,800. The average ground rent payable was £60 collected yearly. The lease came to a finish in 2081. Taking into account 55 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.