Bottesford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Bottesford tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Bottesford you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Bottesford with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Engaging our service gives you increased control over the value of your Bottesford leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her garden apartment in Bottesford, Rhiannon commenced the lease extension process just as the lease was coming close to the crucial 80-year mark. The legal work was finalised in January 2015. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. I King purchased a recently refurbished flat in Bottesford in July 1997. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable premises in Bottesford with an extended lease were worth £246,800. The average ground rent payable was £60 invoiced annually. The lease expired on 1 July 2076. Taking into account 50 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 not including legals.
Last Winter we were phoned by Mr and Mrs. K García , who moved into a basement apartment in Bottesford in June 1995. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable homes in Bottesford with a long lease were valued around £208,200. The mid-range ground rent payable was £65 collected annually. The lease elapsed in 2087. Having 61 years remaining we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.