Bourton on the Water leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Bourton on the Water enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Bourton on the Water you must see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 |
The conveyancing solicitors that we work with handle Bourton on the Water 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 conveyancer we work with provide it.
Aiden owned a studio flat in Bourton on the Water being marketed with a lease of a few days over 59 years left. Aiden informally approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2012 we were approached by Mr and Mrs. I Alexander who, having bought a basement apartment in Bourton on the Water in May 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Bourton on the Water with 100 year plus lease were valued around £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease terminated on 28 March 2076. Taking into account 51 years unexpired we estimated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 plus fees.
Mr and Mrs. C Parker owned a first floor apartment in Bourton on the Water in October 2006. The question was if we could estimate the price would be for a ninety year lease extension. Comparable residencies in Bourton on the Water with 100 year plus lease were valued about £210,600. The average amount of ground rent was £45 billed yearly. The lease lapsed in 2087. Taking into account 62 years left we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including costs.