With a long leasehold property in Bourton on the Water, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Bourton on the Water with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has below eighty years left, under the relevant Act the landlord can calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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. |
| 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 secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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.
After protracted negotiations with the freeholder of her first floor flat in Bourton on the Water, Victoria initiated the lease extension process as the 80 year deadline was swiftly nearing. The legal work was finalised in November 2008. The freeholder’s fees were negotiated to a tad over five hundred GBP.
In 2009 we were phoned by Mr and Mrs. B Clark who, having completed a studio apartment in Bourton on the Water in January 2006. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Similar premises in Bourton on the Water with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 billed yearly. The lease ended in 2099. Taking into account 73 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
In 2009 we were contacted by Dr K Miller who, having completed a newly refurbished apartment in Bourton on the Water in June 2007. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Similar homes in Bourton on the Water with 100 year plus lease were valued around £264,000. The average ground rent payable was £60 invoiced per annum. The lease expired in 2079. Having 53 years remaining we calculated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 plus professional charges.