Bottesford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Bottesford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bottesford you should see if your lease has between seventy and 90 years remaining. There are good reasons why a Bottesford leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Bottesford with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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 conveyancing solicitor we work with provide it.
Dylan owned a high value flat in Bottesford on the market with a lease of fraction over 72 years left. Dylan informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mr and Mrs. H Kelly purchased a purpose-built apartment in Bottesford in May 2001. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Identical homes in Bottesford with an extended lease were valued around £173,800. The average amount of ground rent was £60 invoiced monthly. The lease ended on 24 June 2080. Having 55 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of fees.
In 2011 we were contacted by Ms Emily Leroy who, having was assigned a lease of a purpose-built apartment in Bottesford in September 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar homes in Bottesford with 100 year plus lease were valued about £235,200. The average amount of ground rent was £45 collected quarterly. The lease terminated in 2091. Having 66 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.