For anyone whose Bourton on the Water property is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold premises in Bourton on the Water with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| Halifax | Minimum 70 years from the date 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 |
Lease extensions in Bourton on the Water can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bourton on the Water lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year John, came perilously close to the 80-year mark with the lease on his first floor apartment in Bourton on the Water. In buying his flat two decades ago, the unexpired term was of no significance. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. John was able to extend his lease just under the wire in January. John and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he not met the deadline, the figure would have gone up by at least £1,000.
Last Autumn we were called by Mrs U Edwards , who purchased a recently refurbished apartment in Bourton on the Water in June 2002. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar residencies in Bourton on the Water with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease came to a finish in 2096. Having 71 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2010 we were approached by Mrs A González who, having moved into a basement flat in Bourton on the Water in October 1996. The question was if we could approximate the price could be to extend the lease by a further 90 years. Comparable homes in Bourton on the Water with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed annually. The lease concluded in 2076. Considering the 51 years outstanding we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of legals.