On the balance of probabilities where you own a flat in Botley you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Botley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Mason was the the leasehold owner of a 2 bedroom flat in Botley on the market with a lease of a little over fifty eight years left. Mason on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Mason to exercise his statutory right. Mason procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2011 we were contacted by Mr S Allen who, having bought a one bedroom apartment in Botley in November 2011. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Botley with a long lease were worth £208,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease expired on 10 March 2086. Given that there were 61 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus costs.
Dr Robyn Lee took over the lease of a newly refurbished apartment in Botley in November 2004. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical flats in Botley with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed on 20 June 2097. Having 72 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.