Unfortunately that a Bottesford residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Bottesford property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Bottesford will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Bottesford 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 premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Halifax | |
| TSB |
The conveyancers that we work with procure Bottesford 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 conveyancer we work with provide it.
Isaac owned a 2 bedroom apartment in Bottesford being marketed with a lease of a little over sixty years remaining. Isaac informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mrs K Khan acquired a garden apartment in Bottesford in October 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Bottesford with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 billed per annum. The lease elapsed in 2095. Having 69 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
In 2012 we were contacted by Mr Hunter Robinson who, having bought a purpose-built apartment in Bottesford in January 1997. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Bottesford with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease elapsed on 8 May 2106. Considering the 80 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.