When it comes to domestic leasehold premises in Bottesford, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Leasehold owners in Bottesford with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has below 80 years left, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | 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. |
Retaining our service will provide you better control over the value of your Bottesford leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
John owned a studio flat in Bottesford on the market with a lease of fraction over 59 years left. John on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord was keen 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 John to exercise his statutory right. John obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
In 2010 we were called by Ms Natasha Cook who, having acquired a first floor flat in Bottesford in September 1998. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable properties in Bottesford with an extended lease were in the region of £210,600. The average amount of ground rent was £45 billed monthly. The lease ran out on 13 June 2088. Having 62 years as a residual term we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.
In 2013 we were contacted by Mr and Mrs. U Cooper who, having acquired a recently refurbished flat in Bottesford in February 2011. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative properties in Bottesford with a long lease were in the region of £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease ended on 26 August 2099. Having 73 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.