When it comes to domestic leasehold property in Botley, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Anyone in Botley with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once the lease term has fewer than 80 years left, under the current legislation the landlord is entitled to calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Botley with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Botley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Botley valuers.
After lengthy negotiations with the landlord of her one bedroom flat in Botley, Morgan initiated the lease extension process as the 80 year mark was fast nearing. The lease extension was finalised in October 2007. The landlord’s fees were kept to an absolute minimum.
Last year we were approach by Dr Finley Ward , who acquired a basement apartment in Botley in June 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Botley with a long lease were worth £270,000. The average ground rent payable was £55 billed annually. The lease ended in 2101. Given that there were 75 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
Mr and Mrs. N Girard moved into a garden apartment in Botley in February 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Botley with 100 year plus lease were in the region of £173,800. The average ground rent payable was £60 invoiced per annum. The lease ran out on 15 January 2081. Considering the 55 years left we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus legals.