With a long leasehold property in Boston, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years left. Leasehold owners in Boston with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below 80 years left, under the relevant statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term 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 decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Boston,the lease extension experts 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 Boston valuers.
Sam owned a high value flat in Boston on the market with a lease of a few days over 59 years remaining. Sam on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and secured an acceptable deal informally and readily saleable.
In 2009 we were e-mailed by Mr Nathan Richardson who, having owned a basement flat in Boston in July 2008. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative homes in Boston with an extended lease were valued around £186,000. The average ground rent payable was £65 collected annually. The lease ended in 2084. Taking into account 58 years remaining we approximated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 plus professional charges.
Last month we were approach by Mr Sam Scott , who was assigned a lease of a garden apartment in Boston in February 1999. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable flats in Boston with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed yearly. The lease terminated on 2 January 2095. Having 69 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.