When it comes to long leasehold premises in Bowthorpe, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Anyone in Bowthorpe with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has less than eighty years left, under the relevant legislation the freeholder can calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Bowthorpe with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with procure Bowthorpe 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 conveyancer we work with provide it.
Last year Toby, started to get near to the 80-year mark with the lease on his purpose- built apartment in Bowthorpe. Having purchased his property 19 years previously, the lease term was of no significance. Fortunately, he recognised he needed to take action soon on a lease extension. Toby extended the lease just ahead of time last April. Toby and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If he had missed the deadline, the figure would have increased by at least £975.
Last Spring we were e-mailed by Ms D Kelly , who owned a garden apartment in Bowthorpe in September 2002. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparative flats in Bowthorpe with an extended lease were valued around £250,400. The average ground rent payable was £65 billed monthly. The lease finished in 2089. Taking into account 64 years remaining we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including fees.
In 2012 we were approached by Mr V Lewis who, having bought a one bedroom flat in Bowthorpe in February 2009. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Identical properties in Bowthorpe with 100 year plus lease were worth £184,000. The mid-range amount of ground rent was £55 billed quarterly. The lease end date was in 2078. Having 53 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.