It’s a harsh certainty that a Bozeat residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Bozeat property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Bozeat will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Bozeat can be a difficult process. We recommend you get guidance from a conveyancer and valuer 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.
Trailing protracted negotiations with the landlord of her ground floor apartment in Bozeat, Alexandra initiated the lease extension process as the eighty year mark was rapidly advancing. The transaction was concluded in October 2010. The landlord’s costs were kept to an absolute minimum.
Last year we were e-mailed by Mrs Emma Clarke , who completed a basement apartment in Bozeat in January 2008. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Bozeat with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 collected monthly. The lease ended on 17 June 2103. Given that there were 77 years left we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.
In 2012 we were approached by Mr Liam Martínez who, having moved into a one bedroom apartment in Bozeat in May 2006. The question was if we could estimate the price would be to prolong the lease by ninety years. Comparative homes in Bozeat with a long lease were valued about £183,600. The mid-range ground rent payable was £65 collected annually. The lease ran out in 2083. Taking into account 57 years unexpired we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.