The only way is down when it comes to Bowthorpe lease terms. Bowthorpe leaseholds that have a remaining term lower than 80 years will de-escalate in market price at a rapid rate, and the cost of extending your lease will go up.
Leasehold properties in Bowthorpe with more than one hundred years unexpired on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you increased control over the value of your Bowthorpe leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her first floor apartment in Bowthorpe, Katie started the lease extension process as the eighty year mark was quickly nearing. The lease extension was finalised in June 2014. The landlord’s fees were kept to an absolute minimum.
Last Spring we were called by Mr Eliot Rogers , who was assigned a lease of a one bedroom apartment in Bowthorpe in October 2005. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparable homes in Bowthorpe with an extended lease were valued about £275,000. The average amount of ground rent was £45 collected yearly. The lease elapsed in 2095. Given that there were 69 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.
Mr and Mrs. P Davies completed a basement flat in Bowthorpe in January 2003. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Bowthorpe with a long lease were valued around £216,000. The average ground rent payable was £60 invoiced quarterly. The lease ended on 20 June 2084. Having 58 years remaining we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including costs.