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 your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Bourton on the Water residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bourton on the Water you would be well advised to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Bourton on the Water with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| 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 |
| Yorkshire 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. |
Regardless 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 happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bourton on the Water valuers.
Off the back of lengthy discussions with the freeholder of her basement apartment in Bourton on the Water, Sian initiated the lease extension process as the 80 year threshold was swiftly nearing. The transaction was finalised in April 2011. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were phoned by Mr Milo Roux who, having acquired a one bedroom flat in Bourton on the Water in November 2009. We are asked if we could estimate the price would be to prolong the lease by 90 years. Similar premises in Bourton on the Water with a long lease were worth £220,400. The average ground rent payable was £45 invoiced quarterly. The lease lapsed in 2090. Taking into account 64 years remaining we calculated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of fees.
Dr Amber Campbell was assigned a lease of a newly refurbished apartment in Bourton on the Water in October 2008. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar residencies in Bourton on the Water with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 collected per annum. The lease terminated in 2101. Considering the 75 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.