Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Bourton on the Water. Inevitably, the period of lease remaining shortens over time. This is often ignored and only becomes a problem when the property needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Bourton on the Water have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give due attention before delaying your Bourton on the Water lease extension. Holding off the cost now simply increases the price you will eventually incur to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bourton on the Water can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer 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.
Ryan was the the leasehold proprietor of a studio apartment in Bourton on the Water being sold with a lease of fraction over 72 years left. Ryan informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert advice and secured an acceptable resolution informally and sell the flat.
Mr B Bailey bought a one bedroom apartment in Bourton on the Water in February 2004. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical flats in Bourton on the Water with an extended lease were worth £256,600. The average ground rent payable was £60 billed monthly. The lease ran out on 14 August 2077. Considering the 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 not including expenses.
Dr H Mitchell owned a recently refurbished flat in Bourton on the Water in September 2012. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative properties in Bourton on the Water with a long lease were worth £218,000. The mid-range amount of ground rent was £45 billed yearly. The lease came to a finish in 2088. Taking into account 63 years left we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of legals.