As the the remaining lease term of a Bozeat residential lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Bozeat will qualify for this right; however a conveyancer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Bozeat can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Bozeat lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the landlord of her purpose-built apartment in Bozeat, Freya initiated the lease extension process as the 80 year deadline was rapidly nearing. The transaction was concluded in April 2011. The landlord’s charges were negotiated to about 700 GBP.
In 2013 we were e-mailed by Mr and Mrs. O Turner who, having was assigned a lease of a first floor apartment in Bozeat in June 2011. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable premises in Bozeat with a long lease were in the region of £264,000. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed on 26 February 2079. Given that there were 53 years remaining we approximated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of fees.
In 2012 we were phoned by Mr and Mrs. D Roux who, having purchased a ground floor flat in Bozeat in April 2010. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar flats in Bozeat with 100 year plus lease were worth £220,400. The average amount of ground rent was £45 billed yearly. The lease concluded on 17 March 2090. Given that there were 64 years remaining we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including professional charges.