The closer a residential lease in Bourton on the Water nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. Most flat owners in Bourton on the Water will qualify for this right; however a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Bourton on the Water with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
14 months ago Milo, came seriously near to the 80-year threshold with the lease on his one bedroom flat in Bourton on the Water. In buying his flat two decades ago, the lease term was of minimal relevance. by good luck, he noticed he needed to take action soon on a lease extension. Milo was able to extend his lease just in the nick of time in September. Milo and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If he not met the deadline, the figure would have increased by at least £975.
Last Christmas we were called by Dr H Moreau , who acquired a studio apartment in Bourton on the Water in September 1995. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar homes in Bourton on the Water with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 collected quarterly. The lease expiry date was on 27 January 2106. Given that there were 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
Mr U Dupont bought a recently refurbished flat in Bourton on the Water in November 2011. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Bourton on the Water with a long lease were worth £200,800. The average ground rent payable was £65 billed annually. The lease finished in 2086. Given that there were 60 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of expenses.