Bowthorpe leases on residential properties are gradually diminishing in 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 Bowthorpe enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Bowthorpe you would be well advised to check if your lease has between 70 and ninety 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
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Bowthorpe,the lease extension experts 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 Bowthorpe valuers.
After lengthy correspondence with the landlord of her ground floor flat in Bowthorpe, Georgina started the lease extension process as the eighty year threshold was quickly approaching. The legal work was concluded in October 2014. The landlord’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Mr Leon Roux who, having owned a ground floor apartment in Bowthorpe in August 2007. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Bowthorpe with a long lease were worth £267,600. The average ground rent payable was £65 collected per annum. The lease ended on 26 August 2093. Having 67 years unexpired we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus expenses.
Last Autumn we were phoned by Dr H Watson , who bought a ground floor flat in Bowthorpe in October 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Identical residencies in Bowthorpe with an extended lease were worth £206,200. The average ground rent payable was £55 invoiced monthly. The lease elapsed in 2082. Having 56 years unexpired we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.