Bowthorpe leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of 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 investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Bowthorpe with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Bowthorpe,the lease extension experts that we work with will always be willing 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 negotiations with the landlord of her garden apartment in Bowthorpe, Alisha started the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension was finalised in September 2013. The freeholder’s costs were kept to an absolute minimum.
Last June we were approach by Mr Jamie Richardson , who took over the lease of a garden flat in Bowthorpe in August 1998. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical flats in Bowthorpe with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 billed yearly. The lease elapsed in 2081. Considering the 55 years remaining we approximated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.
Last Spring we were contacted by Dr O François , who completed a first floor apartment in Bowthorpe in July 1995. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Bowthorpe with a long lease were in the region of £295,000. The average ground rent payable was £50 invoiced quarterly. The lease ran out in 2101. Given that there were 75 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.