Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Bottesford. Inevitably, the period of lease remaining reduces over time. This is often ignored and only becomes a problem when the residence has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Bottesford have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Do give due deliberation before putting off your Bottesford lease extension. Holding off the cost now likely increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Sebastian was the the leasehold owner of a conversion flat in Bottesford being marketed with a lease of just over sixty years remaining. Sebastian informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be due on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. R Wood owned a ground floor apartment in Bottesford in February 1999. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar flats in Bottesford with a long lease were valued about £183,600. The average ground rent payable was £65 collected per annum. The lease ended in 2083. Taking into account 57 years remaining we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of costs.
In 2009 we were called by Mr M Wright who, having bought a ground floor flat in Bottesford in October 1999. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparative homes in Bottesford with 100 year plus lease were valued about £245,000. The average amount of ground rent was £50 billed monthly. The lease lapsed on 3 January 2094. Having 68 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.