The value of Botley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Botley leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Lewis, came precariously near to the 80-year mark with the lease on his studio flat in Botley. In buying his home 18 years previously, the unexpired term was of minimal importance. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Lewis was able to extend his lease at the eleventh hour in September. Lewis and the freeholder via the managing agents subsequently settled on sum of £6,000 . If the lease had descended to less than eighty years, the figure would have escalated by at least £1,100.
Mr and Mrs. G Harris moved into a one bedroom apartment in Botley in October 1997. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Botley with a long lease were valued around £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease expired on 26 July 2094. Given that there were 68 years outstanding we approximated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 not including fees.
Mr and Mrs. C Petit completed a garden apartment in Botley in October 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Botley with an extended lease were worth £285,000. The average amount of ground rent was £55 collected every twelve months. The lease concluded on 20 January 2105. Taking into account 79 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.