With a domestic leasehold premises in Bozeat, you are actually purchasing a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Leasehold owners in Bozeat with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years left, under the relevant Act the freeholder is entitled to calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Bozeat with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Bozeat,the lease extension lawyers 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 Bozeat valuers.
Off the back of unsuccessful negotiations with the landlord of her ground floor apartment in Bozeat, Alisha commenced the lease extension process as the eighty year deadline was quickly coming. The transaction was concluded in November 2013. The landlord’s costs were restricted to under six hundred GBP.
In 2012 we were called by Mr and Mrs. H Wilson who, having acquired a garden flat in Bozeat in February 2002. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Similar homes in Bozeat with an extended lease were in the region of £168,800. The average amount of ground rent was £60 collected yearly. The lease finished on 1 January 2080. Taking into account 55 years remaining we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including legals.
Dr P Martinez owned a purpose-built apartment in Bozeat in February 2005. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar flats in Bozeat with a long lease were valued about £235,200. The mid-range ground rent payable was £45 collected every twelve months. The lease ended on 12 May 2091. Given that there were 66 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.