Unfortunately that a Bourton on the Water residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Bourton on the Water property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Bourton on the Water will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Bourton on the Water,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bourton on the Water valuers.
Felix was the the leasehold owner of a conversion apartment in Bourton on the Water on the market with a lease of a little over 61 years left. Felix on an informal basis spoke with his landlord a well known London-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 subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. L Turner purchased a recently refurbished apartment in Bourton on the Water in April 2008. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative properties in Bourton on the Water with a long lease were in the region of £193,400. The mid-range amount of ground rent was £65 collected annually. The lease terminated on 26 April 2084. Having 59 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of legals.
Mr and Mrs. M Brown purchased a recently refurbished flat in Bourton on the Water in November 1998. The question was if we could approximate the price would likely be to extend the lease by ninety years. Comparative residencies in Bourton on the Water with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 collected per annum. The lease lapsed on 12 July 2095. Given that there were 70 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.