Bottesford leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher premium will be payable. Flat owners in Bottesford will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Bottesford with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bottesford can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 Bottesford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Leo, started to get near to the 80-year mark with the lease on his two bedroom apartment in Bottesford. Having bought his property 18 years previously, the lease term was of little bearing. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Leo was able to extend his lease at the eleventh hour last September. Leo and the landlord subsequently agreed on sum of £6,000 . If the lease had slipped to less than 80 years, the sum would have gone up by at least £1,100.
Mr Daniel Patel acquired a first floor apartment in Bottesford in September 1995. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar residencies in Bottesford with a long lease were valued about £200,800. The mid-range amount of ground rent was £65 collected annually. The lease finished in 2085. Taking into account 60 years remaining we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including legals.
Last April we were approach by Dr U Bonnet , who bought a studio flat in Bottesford in March 2001. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical premises in Bottesford with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish in 2096. Considering the 71 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.